ERP Systems

class: segue, left, bottom

# ERP Systems

### Summer 2021

#### Prof. Dr. Dominik Böhler 
Deggendorf Institute of Technology

---
class: sessions

1. Introduction  .excercise[ Future Jobs ].date[ 22.03.2021 ] 
2. E-Business and Collaboration  .excercise[ Excel Basics ].date[ 29.03.2021 ] 
3. IS and Strategy  .excercise[ Collaboration ].date[ 05.04.2021 ] 
4. Ethics  .excercise[ NA ].date[ 19.04.2021 ] 
5. IT Infrastructure  .excercise[ Databases ].date[ 26.04.2021 ] 
6. Business Intelligence  .excercise[ Cloud ].date[ 03.05.2021 ] 
7. Networking  .excercise[ ERP System ].date[ 10.05.2021 ] 
8. Security  .excercise[ Python Basics ].date[ 17.05.2021 ] 
9. Enterprise Applications  .excercise[ Python Data Vis ].date[ 24.05.2021 ] 
10. E-Commerce  .excercise[ Slack Process Autom ].date[ 07.06.2021 ] 
11. Decision-support Systems  .excercise[ Automation Project ].date[ 14.06.2021 ] 
12. Managing IS-Projects  .excercise[ Automation Project ].date[ 21.06.2021 ] 
13. Designing IS Projects  .excercise[ Automation Project ].date[ 28.06.2021 ] 
14. Final Project Presentations  .excercise[ Automation Project ].date[ 05.07.2021 ]

---
class: module-structure

## Structure of Sessions

| Agenda Item | .time[Minutes] |
|:---                                   | ---:|
|     .lecture[Lecture]                 |  60 |
|  .discussion[Class Discussion]        |  30 |
|       .break[Break]                   |  15 |
|   .excercise[Excercise]               |  60 |
|.presentation[Selected Presentations]  |  10 |
|  .reflection[Wrap-up]                 |   5 |

---

---
class: segue, left, bottom

# Introduction
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [From ERP Systems to Management Information Systems](#from-erp-systems-to-management-information-systems)
- [The Digital Revolution](#the-digital-revolution)
- [How Information Systems are Transforming Business and Organizations](#how-information-systems-are-transforming-business-and-organizations)
- [What Is an Information System?](#what-is-an-information-system?)
- [A Problem-solving Mindset](#a-problem-solving-mindset)
- [CLASS DISCUSSION – Will AI Kill Jobs in Healthcare?](#class-discussion-–-will-ai-kill-jobs-in-healthcare?)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

### <svg viewBox="0 0 576 512" xmlns="http://www.w3.org/2000/svg" style="height:1em;fill:currentColor;position:relative;display:inline-block;top:.1em;">  [ comment ]  <path d="M542.22 32.05c-54.8 3.11-163.72 14.43-230.96 55.59-4.64 2.84-7.27 7.89-7.27 13.17v363.87c0 11.55 12.63 18.85 23.28 13.49 69.18-34.82 169.23-44.32 218.7-46.92 16.89-.89 30.02-14.43 30.02-30.66V62.75c.01-17.71-15.35-31.74-33.77-30.7zM264.73 87.64C197.5 46.48 88.58 35.17 33.78 32.05 15.36 31.01 0 45.04 0 62.75V400.6c0 16.24 13.13 29.78 30.02 30.66 49.49 2.6 149.59 12.11 218.77 46.95 10.62 5.35 23.21-1.94 23.21-13.46V100.63c0-5.29-2.62-10.14-7.27-12.99z"></path></svg> PREPARATION

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter NA | [Pages: NA-33](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=NA)**
  ]
]

.pull-right[

### <svg viewBox="0 0 640 512" xmlns="http://www.w3.org/2000/svg" style="height:1em;fill:currentColor;position:relative;display:inline-block;top:.1em;">  [ comment ]  <path d="M208 352c-2.39 0-4.78.35-7.06 1.09C187.98 357.3 174.35 360 160 360c-14.35 0-27.98-2.7-40.95-6.91-2.28-.74-4.66-1.09-7.05-1.09C49.94 352-.33 402.48 0 464.62.14 490.88 21.73 512 48 512h224c26.27 0 47.86-21.12 48-47.38.33-62.14-49.94-112.62-112-112.62zm-48-32c53.02 0 96-42.98 96-96s-42.98-96-96-96-96 42.98-96 96 42.98 96 96 96zM592 0H208c-26.47 0-48 22.25-48 49.59V96c23.42 0 45.1 6.78 64 17.8V64h352v288h-64v-64H384v64h-76.24c19.1 16.69 33.12 38.73 39.69 64H592c26.47 0 48-22.25 48-49.59V49.59C640 22.25 618.47 0 592 0z"></path></svg> LECTURE

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

### <svg viewBox="0 0 512 512" xmlns="http://www.w3.org/2000/svg" style="height:1em;fill:currentColor;position:relative;display:inline-block;top:.1em;">  [ comment ]  <path d="M505.12019,19.09375c-1.18945-5.53125-6.65819-11-12.207-12.1875C460.716,0,435.507,0,410.40747,0,307.17523,0,245.26909,55.20312,199.05238,128H94.83772c-16.34763.01562-35.55658,11.875-42.88664,26.48438L2.51562,253.29688A28.4,28.4,0,0,0,0,264a24.00867,24.00867,0,0,0,24.00582,24H127.81618l-22.47457,22.46875c-11.36521,11.36133-12.99607,32.25781,0,45.25L156.24582,406.625c11.15623,11.1875,32.15619,13.15625,45.27726,0l22.47457-22.46875V488a24.00867,24.00867,0,0,0,24.00581,24,28.55934,28.55934,0,0,0,10.707-2.51562l98.72834-49.39063c14.62888-7.29687,26.50776-26.5,26.50776-42.85937V312.79688c72.59753-46.3125,128.03493-108.40626,128.03493-211.09376C512.07526,76.5,512.07526,51.29688,505.12019,19.09375ZM384.04033,168A40,40,0,1,1,424.05,128,40.02322,40.02322,0,0,1,384.04033,168Z"></path></svg> EXCERCISE

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

Learning Objectives
-------------------

__1.1__ Why are information systems so essential for running and managing a business today?

__1.2__ What exactly is an information system? How does it work? What are its people, organizational, and technology components?

__1.3__ How will a four-step method for business problem solving help you solve information system-related problems?

__1.4__ What information systems skills and knowledge are essential for healthcare careers?

__1.5__ How will IS help my career?

---

Non-Objectives
--------------

__1.1.__ You will NOT learn how to use an information system or ERP System

__1.2.__ We only touch upon theory from time to time. This is a practical course :-)

__1.3.__ You will NOT learn how to customize off-the-shelf ERP Systems

---

Video Case Studies
==================

---
class: segue-red

# From ERP Systems to Management Information Systems

---
background-image:url(https://media1.giphy.com/media/XgE4LlECZjw6k/giphy.gif)

## One Ring to Rule them All - The (old) Idea of One Integrated Monolithical System

---

## Let's unwrap the term ERP together

.fl.w-third[
  Enterprises
  ]

.fl.w-third[
  Resources
  ]
  
.fl.w-third[
  Planning
  ]
    
    
    
---

## Enterprises - What is you perspective on Organization?

- What is organized? Organized == Ordered?
- How can you enforce coordinated action?
- Information only? 
- Leadership + Real-time Information (True Agility)

---

## Resources - What is and what will be valuable

.content-box-blue[

#### In the digital Age some of the basic presumptions of the industrial economy are being challenged

]

.columns-2[
  .content-box-army[
    Old Economy:
    
    - Physical Goods
    - Protection of IP
    - Local Recombination of Physical Goods
    - Economies of Scale
    - Linearity]

.content-box-yellow[
    New Economy:
  
    - Virtual Goods
    - Sharing of Ideas
    - Global Real-time Collaboration
    - Network Effects
    - Complexity]
]

---

## Planning 
#### How are we supposed to know what we did until we did it?

- Switch from a producer to a consumer-centric industrial production
- From:  Mass Custumization, 3D-Printing, Industry 4.0
- To: Hyperpersonlization and Servitization

---

## Wrap-up

- ERP-Systems put strict models on current sitations 
- Reasonable in particular "Standard Processes"
- However, less and less "Standard Processes" more Agility
- Less Orders, More Discourse

---
class: segue, center, middle

## SO, LET'S TALK ABOUT **INFORMATION SYSTEMS**

---
class: segue, center, middle

## ... AND SOME ERP **(but later...) **

---
class: segue-red

# The Digital Revolution

---

## The advent and connection of digital technologies fueled digital transformation

*__Industrial Age__: Technology has fundamentally changed business.
*__Information Age:__ Production, distribution, control of information primary economic drivers.
*__Digital Transformation:__ New forms of work and value creation emerge.

.content-box-gray[**WHAT'S NEXT?!**]

---

## Understanding the Forces Pushing the Evolution of New Digital Devices

####Bell’s Law

<div id="htmlwidget-85875db22b4fd8bb4682" style="width:100%;height:500px;" class="highchart html-widget"></div>
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???

- New class of computers establishes a new industry each decade.
- New platforms, programming environments, industries, networks, and information systems.
- Understand how next digital evolution will affect businesses.
- What an industry does and how does it will change.

---
## Gartner Hypecycle

???

[Understanding the Hype Cycle](https://www.gartner.com/en/documents/3887767/understanding-gartner-s-hype-cycles)
[Hype Cycle History](https://flowingdata.com/2020/10/14/visual-tour-through-the-technology-hype-cycle/)
[DataSet 1995-2020](https://drive.google.com/file/d/1y_fzgknqRdPa0KfXiGq44blGqDN3NYv3/view?usp=sharing)

---

## Moore's Law - The number of Transistors per Microprocessor doubles every .can-edit[XX] months?

???

Source: [Karl Rupp - GitHub Repo](https://github.com/karlrupp/microprocessor-trend-data)

---
class: video

---
class: segue-red, center, middle

## Interactive Execercise 2

Let's head to Miro!

---

## Technological Change is Accelerating

Bell’s Law: Today’s highly successful business could be bankrupt quickly because technology changed and it didn’t.

> Example: Blockbuster
* In 2004, Blockbuster had $5.9B in revenues
* In 2010, Blockbuster filed for bankruptcy
* High-speed network connections and streaming video changed the competitive landscape

.content-box-gray[
- Which other industries have been strongly affected by Digital Transformation?
- Which Industries may suffer from the spread of Quantum Computing and AI?
]

---
class: segue-red, middle, center

# How Information Systems are Transforming Business and Organizations

---
class: picture-cols-3

## Key Challenges in Management Information Systems

.fl.w-third[

   **New technologies**
  - Artificial intelligence
  - Cloud computing, Big Data, Internet of Things
  - Mobile digital platform
]

.fl.w-third[

  **Management**
  - Return on investment (ROI)
  - Online collaboration
  - Social networking
]

.fl.w-third[

  **Organizations**
  - Security and privacy
  - Social business
  - Telework gains
]

???

In our current environment the key challenges for Management Information Systems are in coping with new technologies, (performance) Management, and organizing IT Systems. Due to the rapid and somewhat forced virtualization of all enterprises these are almost identical to General Management Challenges. The question arises if there is a substantial difference between General and IS Management at the moment and also in the future.

---

## Globalization Challenges and Opportunities: A Flattened World

Internet and global communications have greatly reduced economic and cultural advantages of developed countries.

- Drastic reduction of costs of operating and transacting on global scale
  - Competition for jobs, markets, resources, ideas
  - Dependence on imports and exports
  - Requires new understandings of skills, markets, opportunities

---
class: list-overview

## Business Drivers of Information Systems

Businesses invest in IT to achieve six important business objectives.

- Operational excellence
- New products, services, and business models
- Customer and supplier intimacy
- Improved decision making
- Competitive advantage
- Survival

---

## Operational Excellence

* Improved efficiency results in higher profits.
* Information systems and technologies help improve efficiency and productivity.
* Example: Walmart
  * Power of combining information systems and best business practices to achieve operational efficiency—and over $514 billion in sales in 2019
  * Most efficient retail store in world as result of digital links between suppliers and stores

---

## New Products, Services, and Business Models

???

* Information systems and technologies enable firms to create new products, services, and business models.
* Business model: how a company produces, delivers, and sells its products and services
* Example: Apple
  * Transformed old model of music distribution with iTunes
  * Constant innovations—iPod,iPhone,iPad, etc.

---

## Customer and Supplier Intimacy

* Customers who are served well become repeat customers who purchase more.
  * Mandarin Oriental Hotel uses IT to foster an intimate relationship with its customers, keeping track of preferences, and so on
* Close relationships with suppliers result in lower costs.
  * JCPenney
    * IT to enhance relationship with supplier in Hong Kong

---

## Improved Decision Making

If managers rely on forecasts, best guesses, and luck, they will misallocate employees, services, and inventory.

Real-time data improves ability of managers to make decisions.

Verizon: web-based digital dashboard to update managers with real-time data on customer complaints, network performance, and line outages

---

## Competitive Advantage

* Often results from achieving previous business objectives
* Advantages over competitors:
  * Charging less for superior products, better performance, and better response to suppliers and customers
  * Examples: Apple, Walmart, andU P Sare industry leaders because they know how to use information systems for this purpose

---

## Survival

* Businesses may need to invest in information systems out of necessity; it is simply the cost of doing business.
* Keeping up with competitors
  * Citibank’s introduction ofA T Ms
* Federal and state regulations and reporting requirements
  * Toxic Substances Control Act and the Sarbanes-Oxley Act

---

# What Is an Information System?

* Information technology: the hardware and software a business uses to achieve objectives
* Information system: interrelated components that manage information to:
  * Support decision making and control
  * Help with analysis, visualization, and product creation
* Data: streams of raw facts
* Information: data shaped into meaningful, useful form

* Activities in an information system that produce information:
  * Input
  * Processing
  * Output
  * Feedback
  
* Sharp distinction between __computer__ or __computer program__ versus __information system__

---

## Figure 1.1 Data and Information

![](data:image/png;base64,#img/laudon_emis14_ppt_ch01_MS-ct1.jpg){height=80%, width=80%}

---

## Figure 1.2 Functions of an Information System

![](data:image/png;base64,#img/laudon_emis14_ppt_ch01_MS-ct2.jpg){height=80%, width=80%}

---

## The Role of People and Organizations

* Information systems literacy
  * Includes behavioral and technical approach
* Computer literacy
  * Focuses mostly on knowledge ofI T
* Management information systems (M I S)
  * Focuses on broader information systems literacy
  * Issues surrounding development, use, impact of information systems used by managers and employees
  * Focuses on firm performance, productivity, and competitive challenges

---

## Figure 1.3 Information Systems Are More Than Computers

![](data:image/png;base64,#img/laudon_emis14_ppt_ch01_MS-ct3.jpg){height=80%, width=80%}

---

## Dimensions of Information Systems

.fl.w-third[
 ### Organizations
  - Coordinate work through structured hierarchy and business processes
  - Business processes: related tasks and behaviors for accomplishing work
  ]

.fl.w-third[
  ### People
   - Information systems require skilled people to build, maintain, and use them.
   - Employee attitudes affect their ability to use systems productively.
  ]
  
.fl.w-third[
  ### Technology
  * IT Infrastructure: Foundation or platform that information systems are built on
    * Computer hardware
    * Computer software
    * Data management technology
    * Networking and telecommunications technology
  ]

---
## CRITICAL THINKING: <br \> In the Digital Age, do these statements hold true?

### Statement on Organizational Structure
> Coordinate work through structured hierarchy and business processes

### Statement on Management
> Role of managers:
    - Perceive business challenges
    - Set organizational strategy
    - Allocate human and financial resources
    - Creative work: new products, service
    
---

## Interactive Session – Technology: US Competes Globally with Information Technology

* Class discussion
  * What are the inputs, processing, and outputs of UPS’s package tracking system?
  * What technologies are used by UPS? How are these technologies related to UPS’s business strategy?
  * What strategic business objectives do UPS’ sinformation systems address?
  * What would happen if UPS’ sinformation systems were not available?

---

# A Problem-solving Mindset

* Few business problems are simple or straightforward.
* Most business problems involve a number of major factors that can fall into three main categories:
  * Organization
  * Technology
  * People

---

## A Model of the Problem-Solving Approach

Problem solving: four-step process
  * Problem identification
  * Solution design
  * Choice
  * Implementation

---

## Problem identification includes:
  * Agreement that problem exists
  * Definition of problem
  * Causes of problem
  * What can be done given resources of firm
  
---

## Typical organizational problems

* Outdated business processes
  * Unsupportive culture and attitudes
  * Political in-fighting
  * Turbulent business environment, change
  * Complexity of task
  * Inadequate resources
  
---

## Typical technology problems

* Insufficient or aging hardware
  * Outdated software
  * Inadequate database capacity
  * Insufficient telecommunications capacity
  * Incompatibility of old systems with new technology
  * Rapid technological change

---

## Typical people problems
  * Lack of employee training
  * Difficulties of evaluating performance
  * Legal and regulatory compliance
  * Work environment, ergonomics
  * Poor or indecisive management
  * Lack of employee support and participation

---
## Solution design
  * Often many possible solutions
  * Consider as many as possible to understand range of solutions

---
## Solution Evaluation and Choice – factors include:
  * Cost
  * Feasibility given resources and skills
  * Length of time needed to implement solution

---
## Implementation
  * Building or purchasing solution
  * Testing solution, employee training
  * Change management
  * Measurement of outcomes
  * Feedback, evaluation of solution
* Problem solving is a continuous process, not a single event
  * Sometimes chosen solution doesn’t work or needs adjustment

---

## Figure 1.4 Problem Solving Is a Continuous Four-Step Process

![](data:image/png;base64,#img/laudon_emis14_ppt_ch01_MS-ct4.jpg){height=80%, width=80%}

---

## The Role of Critical Thinking in Problem Solving (1 of 2)

* Without critical thinking, easy to jump to conclusions, misjudge a problem, and waste resources
* Critical thinking:
  * Sustained suspension of judgment with an awareness of multiple perspectives and alternatives
  * Ability to collect and analyze data that might help understand the nature of the problem; a “data driven” approach

* Four elements of critical thinking:
  * Maintaining doubt and suspending judgment
  * Being aware of different perspectives

* Including technology, organization, and people perspectives
  * Testing alternatives and letting experience guide
  * Being aware of organizational and personal limitations

---

## The Connections Among Business Objectives, Problems, and Solutions

When firms cannot achieve business objectives these objectives become challenges.

Information systems often present solutions, partially or fully, to these challenges.

---

## How Information Systems Will Affect Business Careers

- Success in today’s job market requires a broad set of skills.
- Job candidates must have problem-solving skills as well as technical skills so that they can complete specific tasks.
- The service sector will account for 95 percent of the new jobs that are created or open up by 2022.

.panelset[
  
  .panel[.panel-name[Accounting]
      Accountants increasingly rely on information systems to summarize transactions, create financial records, organize data, and perform financial analysis.
    
    Skills:
    - Knowledge of databases and networks
    - Online financial transactions and reporting systems
    - How systems are used to achieve accounting functions
    
    ]
    
  .panel[.panel-name[Finance]
    Relationship between information systems and financial management and services is so strong that many advise finance majors to co-major in information systems.
    
    Skills:
    - Use systems for financial reporting, direct investment activities, implementation of cash management strategies
    - Plan, organize, implement information systems strategies for the firm
    
    ]
  
  .panel[.panel-name[Marketing]
    No field has undergone more technology-driven change in the past five years than marketing and advertising.
    
    Skills:
    - Work with databases for tracking and reporting on customer behavior, product performance, customer feedback, product development
    - Enterprise systems for product management, sales force management, customer relationship management
    
    ]
  
  .panel[.panel-name[Operations]
     Operations management in services and manufacturing: Production managers, administrative service managers, and operations analysts
  
    Skills:
    - Hardware and software platforms for operations management
    - Use database and analytical software for coordinating and optimizing resources required for producing goods and services

]
  
  .panel[.panel-name[Management]
    The job of management has been transformed by information systems. Impossible to manage business today without information systems
    
    Skills:
    - Use of information systems for each function of job, from desktop productivity tools to applications coordinating the entire enterprise
  ]
  
  .panel[.panel-name[Information Systems]
    Fast changing and dynamic profession because information technologies are among most important tools for achieving business firms’ key objectives. Domestic and offshore outsourcing
  
    Skills:
    - Uses of new and emerging hardware and software to achieve six business objectives
    - An ability to take a leadership role in the design and implementation of new information systems
  ]
  
  .panel[.panel-name[Outsourcing]
  Two types: outsourcing to domestic U.S. firms and outsourcing to low-wage countries such as India, China. Production programming, system maintenance, call centers
  
  Benefits:
  - Lower cost of building and maintaining systems within U.S. or Europe
  - Increased need for managerial positions
  ]
]

---

## Common requirements for all majors

- How IT helps achieve six business objectives
  - Central role of databases
  - Business analytics and intelligence systems
  - Working with specialists and systems designers
  - Ethical, social, legal environment and issues and the Use of IT to meet legal requirements

---

# CLASS DISCUSSION – Will AI Kill Jobs in Healthcare?

.question[
    - Identify the problem described in this case study. In what sense is it an ethical dilemma?
]
    
--

.question[
    - Should more tasks be given to AI? Why or why not? Explain your answer.
]

.question[
    - Can the problem of AI reducing employment be solved? Explain your answer.
]

---

## How Will MIS Help My Career in Digital Healthcare?

- Research the Impact of AI and Quantum Computing on Healthcare
- Which Applications may become possible through Quantum Computing
- Which Routines may change through AI?

.excercise[ 
  
  EXCERCISE
  
  1. Get together in Groups of 2 (Random Zoom Assignment)
  2. Discuss with your peer about a clincal field/function
  3. Create a Hypotheses ("AI will/will not kill radiology")
  4. Find one supporting and one contradicting piece of evidence
  5. Bring your arguments together on 1 Slide (See here: )

]

---
class: segue, left, bottom

# Collaboration
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Organization and Business Processes](#organization-and-business-processes)
- [Information Systems in Business](#information-systems-in-business)
- [Collaboration & Open Innovation](#collaboration-&-open-innovation)
- [CLASS DISCUSSION: The Future of Work](#class-discussion:-the-future-of-work)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 1 | [Pages: 33-63](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=33)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives

__2.1__ What major features of a business are important for understanding the role of information systems?

__2.2__ How do systems serve different management groups in a business,and how do systems that link the enterprise improve organizational performance?

__2.3__ Why are systems for collaboration and social business so important,and what technologies do they use?

__2.4__ What is the role of the information systems function in a business?

__2.5__ How will MIS help my career?

---
class: segue-red

# Organization and Business Processes

---

## Enterprise Social Networking creates a More Innovative Connected Organization

Take a look at Slacks's Customer Success Stories: https://slack.com/customer-stories

- How did Slack help these companies? What Problems did they solve?
- How benefitted these companies economically?

TASK: Choose one Success Story and answer these questions with your (randomly assigned) group mate.

???

* Problem
  * Hierarchical top-down processes and culture
  * New competitors
* Solutions
  * Improve productivity
  * Reduce costs
  * Increase innovation

Use of new information systems to improve their performance and remain competitive

Demonstratesimportance of teamwork and collaboration to innovation and profit growth

Illustratesimportance of organizational culture and business processes for knowledge dissemination

---

## Organizing a Business: Basic Business Functions (1 of 2)

* Business: formal organization that makes products or provides a service in order to make a profit
* Business Model: Logic of making a profit

* Four basic business functions
  * Manufacturing and production
  * Sales and marketing
  * Finance and accounting
  * Human resources

---

## Organizing a Business: Basic Business Functions (2 of 2)

* Five basic business entities
  * Suppliers
  * Customers
  * Employees
  * Invoices/payments
  * Products and services

---

## Figure 2.1 The Four Major Functions of a Business

---

## Business Processes

* Logically related set of tasks that define how specific business tasks are performed
  * The tasks each employee performs,in what order,and on what schedule
  * E.g.,Steps in hiring an employee
* Some processes tied to functional area
  * Sales and marketing: identifying customers
* Some processes are cross-functional
  * Fulfilling customer order

---

## Figure 2.2 The Order Fulfillment Process

---

## How IT Enhances Business Processes

- Automation of manual processes
- Change the flow of information
- Replace sequential processes with simultaneous activity
- Transform how a business works
- Drive new business models

---

## Managing a Business and Firm Hierarchies

* Firms coordinate work of employees by developing hierarchy in which authority is concentrated at top.
  * Senior management
  * Middle management
  * Operational management
  * Knowledge workers
  * Data workers
  * Production or service workers
* Each group has different needs for information.

---

## Figure 2.3 Levels in a Firm

---

## The Business Environment

* Businesses depend heavily on their environments for capital,labor,supplies,and more.
* Global environment
  * Technology and science,economy,politics,international change
* Immediate environment
  * Customers,suppliers,competitors,regulations,stockholders

---

## Figure 2.4 The Business Environment

---
## From Environments to Ecosystems

- Higher degree of Digitalization leads to a diffusion of the boundaries of the firm
- Many Digital Players with Ecosystems ("API Economy")

???

[@HowBusinessEcosystems]
[@EmergingArtEcosystem2020]
[API Economy](https://wirtschaftslexikon.gabler.de/definition/api-economy-54284/version-277330)

---
class: segue-red

# Information Systems in Business

---

## The Role of Information Systems in a Business

* Firms invest in information systems in order to:
  * Achieve operational excellence
  * Develop new products and services
  * Attain customer intimacy and service
  * Improve decision making
  * Promote competitive advantage
  * Ensure survival

---

## Systems for Different Management Groups

* Transaction processing systems $T P S$
  * Keep track of basic activities and transactions of organization
* Systems for business intelligence
  * Address decision-making needs of all levels of management
    * Management information systems $M I S$
    * Decision support systems $D S S$
    * Executive support systems $E S S$

---

## Transaction Processing Systems

* Serve operational managers
* Principal purpose is to answer routine questions and to track the flow of transactions through the organization
  * E.g.,inventory questions,granting credit to customer
* Monitor status of internal operations and firm’s relationship with external environment
* Major producers of information for other systems
* Highly central to business operations and functioning

---

## Figure 2.5 A Payroll T P S

---

## Management Information Systems

Provide middle managers with reports on firm’s performance,to help monitor firm and predict future performance

Summarize and report on basic operations using data fromT P S

Provide weekly,monthly,annual results,but may enable drilling down into daily or hourly data

Typically not very flexible systems with little analytic capability

---

## Figure 2.6 How M I S Obtain Their Data from the Organization’s T P S

---

## Figure 2.7 Sample M I S Report

---

## Decision Support Systems

* Serve middle managers
* Support nonroutine decision making
  * Example: What is impact on production schedule if December sales double?
* Often use external information as well fromT P SandM I S
* Model drivenD S S
  * Voyage-estimating systems
* Data drivenD S S
  * Intrawest’s marketing analysis systems

---

## Figure 2.8 Voyage-Estimating Decision Support System

---

## Executive Support Systems

* Serve senior managers
* Address strategic issues and long-term trends
  * E.g.,what products should we make in five years?
* Address nonroutine decision making
* Provide generalized computing capacity that can be applied to changing array of problems
* Draw summarized information fromM I S\,D S S,and data from external events
* Typically use portal with web interface,or digital dashboard,to present content

---

## A Digital Dashboard

---

## Systems for Linking the Enterprise

* Enterprise applications
  * Systems that span functional areas,focus on executing business processes across the firm,and include all levels of management
* Four major types
  * Enterprise systems
  * Supply chain management systems
  * Customer relationship management systems
  * Knowledge management systems

---

## Figure 2.9 Enterprise Application Architecture

---

## Enterprise Systems

Also called enterprise resource planning $ERP$ systems

Integrate data from key business processes into single system

Speed communication of information throughout firm

Enable greater flexibility in responding to customer requests,greater accuracy in order fulfillment

Enable managers to assemble overall view of operations

---

## Supply Chain Management (S C M ) Systems

* Manage relationships with suppliers,purchasing firms,distributors,and logistics companies
* Manage shared information about orders,production,inventory levels,and so on
  * Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost
* Type of interorganizational system
  * Automating flow of information across organizational boundaries

---

## Customer Relationship Management (C R M ) Systems

* Help manage relationship with customers
* Coordinate business processes that deal with customers in sales,marketing,and customer service
* Goals:
  * Optimize revenue
  * Improve customer satisfaction
  * Increase customer retention
  * Identify and retain most profitable customers
  * Increase sales

---

## Knowledge Management Systems

Manage processes for capturing and applying knowledge and expertise

Collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions

Link firm to external sources of knowledge

---

## Intranets and Extranets

* Technology platforms that increase integration and expedite the flow of information
* Intranets:
  * Internal networks based on Internet standards
  * Often are private access area in company’s website
* Extranets:
  * Company websites accessible only to authorized vendors and suppliers
  * Facilitate collaboration

---

## E-Business, E-Commerce, and E-Government

E-business
: Use of digital technology and Internet to drive major business processes

E-commerce
: Subset of e-business,  Buying and selling goods and services through Internet

E-government
: Using Internet technology to deliver information and services to citizens, employees, and businesses

---
class: segue-red

# Collaboration & Open Innovation

---

## What is Collaboration?

* Growing importance of collaboration:
  * Changing nature of work
  * Growth of professional work
  * Changing organization of the firm
  * Changing scope of the firm
  * Emphasis on innovation
  * Changing culture of work and business
  
???

[@moesleinOpenInnovation2009]

---

## What is Social Business?

- Use of social networking platforms to engage employees,customers,suppliers
- Conversations to strengthen bonds
- Requires information transparency
- Seen as way to drive operational efficiency,spur innovation,accelerate decision making

---

## Business Benefits of Collaboration and Social Business

- Investment in collaboration technology can return large rewards,especially in sales and marketing,research and development.
- Productivity: sharing knowledge and resolving problems
- Quality: faster resolution of quality issues
- Innovation: more ideas for products and services
- Customer service: complaints handled more rapidly
- Financial performance: generated by improvements in factors above

---

## Figure 2.10 Requirements for Collaboration

---

## Tools and Technologies for Collaboration and Teamwork

* Email and instant messaging $IM$
* Wikis
* Virtual worlds
* Collaboration and social business environments
  * Virtual meeting systems $telepresence$
  * Cloud collaboration services
    * Google Drive, Dropbox, OneDrive
  * Microsoft SharePoint and IBM Notes
  * Enterprise social networking tools
    * Slack, MS Teams, Discord

---
class: segue-red

# CLASS DISCUSSION: The Future of Work

---

## Digital Companies employ new forms of Organizing

[VALVE Handbook for new Employees](https://cdn.cloudflare.steamstatic.com/apps/valve/Valve_NewEmployeeHandbook.pdf)

> Hierarchy is great for maintaining predictability and
repeatability. It simplifies planning and makes it easier to
control a large group of people from the top down, which
is why military organizations rely on it so heavily.
But when you’re an entertainment company that’s spent
the last decade going out of its way to recruit the most
intelligent, innovative, talented people on Earth, telling
them to sit at a desk and do what they’re told obliterates
99 percent of their value.

> We want innovators, and that means maintaining an environment where they’ll flourish.
That’s why Valve is flat. It’s our shorthand way of saying
that we don’t have any management, and nobody “reports
to” anybody else. We do have a founder/president, but
even he isn’t your manager. This company is yours to
steer—toward opportunities and away from risks. You have
the power to green-light projects. You have the power to
ship products.

![[VALVE Logo]](data:image/png;base64,#img/1280px-Valve_logo.svg.png)

???

[@kroghValveOrganizationOpportunities2015]

---

## Interactive Session – Welcome to Flatland!

* Class discussion
 - What are the benefits and challenges of Valve's approach and culture for employees?
 - How does this culture relate to the Information Systems used in the Company?
 - What are potential threats for such a culture? What is important to counter these threats?

---

## Evaluating and Selecting Collaboration Tools

- What are your firm’s collaboration challenges?
- What kinds of solutions are available?
- Analyze available products’ cost and benefits.
- Evaluate security risks.
- Consult users for implementation and training issues.
- Select candidate tools and evaluate vendors.

???

[@kochEnterprisePlanungEinfuehrung2009]

---

## Figure 2.11 The Time/Space Collaboration and Social Tool Matrix

---

## Systems for Knowledge Management

* Structured vs. tacit knowledge
* Systems for knowledge management
  * Enterprise Content Management  $ECM$ Systems
  * Locating and sharing expertise
  
  
---

## Figure 2.12 Enterprise Content Management System

---
class: segue, left, bottom

# Strategy
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Competitive Strategy](#competitive-strategy)
- [Value Chain](#value-chain)
- [Synergies, Core Competencies, and Network-Based Strategies](#synergies,-core-competencies,-and-network-based-strategies)
- [Quality and Business Processes](#quality-and-business-processes)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 2 | [Pages: 63-91](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=63)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

Learning Objectives
-----------
__3.1__ How do Porter’s competitive forces model, the value chain model, synergies, core competencies, and network-based strategies help companies use information systems for competitive advantage?

__3.2__ How do information systems help businesses compete globally?

__3.3__ How do information systems help businesses compete using quality and design?

__3.4__ What is the role of business process management (BPM) in enhancing competitiveness?

---

## N26: A Bank Without Branches

* Problem
  * Improving operational efficiency
  * Improve customer experience
* Solutions
  * Online customer-centric processes
  * Improved cash-based operations
  * Security systems
* Illustrates use of IT to differentiate services and improve customer experience

---
class: segue-red

# Competitive Strategy

---

## Porter’s Competitive Forces Model

* Five competitive forces shape fate of firm
  * Traditional competitors
  * New market entrants
  * Substitute products and services
  * Customers
  * Suppliers

---

## Figure 3.1 Porter’s Competitive Forces Model

---

## Information System Strategies for Dealing with Competitive Forces

.panelset[
  .panel[.panel-name[Basic Strategy]
      Align IT with business objectives
      * Identify business goals and strategies
      * Break strategic goals into concrete activities and processes
      * Identify metrics for measuring progress
      * Determine how IT can help achieve business goals
      * Measure actual performance
  ]
  .panel[.panel-name[Low-cost leadership]
    * Use information systems to achieve the lowest operational costs and the lowest prices
    * E.g. Walmart
      * Inventory replenishment system sends orders to suppliers when purchase recorded at cash register
      * Minimizes inventory at warehouses, operating costs
      * Efficient customer response system
  ]
  .panel[.panel-name[Product differentiation]
    * Use information systems to enable new products and services, or greatly change the customer convenience in using your existing products and services
    * E.g., Google's continuous innovations, Apple's iPhone
    * Use information systems to customize, personalize products to fit specifications of individual consumers
    * E.g., Nike's NIKEi Dprogram for customized sneakers
  ]
  .panel[.panel-name[Focus on market niche]
    * Use information systems to enable specific market focus, and serve narrow target market better than competitors.
    * Analyzes customer buying habits, preferences
    * Advertising pitches to smaller and smaller target markets
  
    E.g., Hilton Hotel’s OnQSystem
    * Analyzes data collected on guests to determine preferences and guest's profitability
  ]
  .panel[.panel-name[Strengthen customer and supplier intimacy]
    * Strong linkages to customers and suppliers increase switching costs and loyalty
    * Toyota: usesI Sto facilitate direct access from suppliers to production schedules
      * Permits suppliers to decide how and when to ship supplies to plants, allowing more lead time in producing goods
    * Amazon: keeps track of user preferences for purchases, and recommends titles purchased by others
    ]
]

---

## The Internet’s Impact on Competitive Advantage

- Enables new products and services
- Encourages substitute products
- Lowers barrier to entry
- Changes balance of power of customers and suppliers
- Transforms some industries
- Creates new opportunities for creating new markets, building brands, and large customer bases
- Smart products and the Internet of Things

---
class: segue-red

# Value Chain

---

## The Business Value Chain Model

* Highlights specific activities in a business where competitive strategies can best be applied and where information systems are likely to have a strategic impact.
  * Primary activities
  * Support activities
  * Benchmarking
  * Best practices

---

Figure 3.2 The Value Chain Model
--------

---

## The Value Web

* A firm’s value chain is linked to the value chains of its suppliers, distributors, and customers.
* Value web
  * Collection of independent firms that use information technology to coordinate their value chains to produce a product collectively
  * Value webs are flexible and adapt to changes in supply and demand

---

## Figure 3.3 The Value Web

---
class: segue-red

# Synergies, Core Competencies, and Network-Based Strategies

* Large corporations comprised of business units
  * Financial returns overall are tied to performance of business units
* Information systems improve performance of business units by promoting
  * Communication
  * Synergies (Revenue, Cost, Financial)
  * Core competencies, Dynamic Capabilities

---

## Synergies

### Types of Synergies

- Revenue
- Cost
- Financial

### Examples

- When output of some business units can be used as inputs to other units
- When two firms can pool markets and expertise (e.g., recent bank mergers) to lower costs and generate profits
- Enabled by information systems that ties together disparate units so they act as whole

???

---

## Core Competency

* Activities for which firm is world-class leader
  * E.g., world’s best miniature parts designer, best package delivery service, etc
* Relies on knowledge gained over years of experience as well as knowledge research
* Any information system that encourages the sharing of knowledge across business units enhances competency
  * E.g., Procter & Gamble uses intranet to help people working on similar problems share ideas and expertise.

---

## Network-Based Strategies

* Network economics
  * Marginal costs of adding another participant are near zero, whereas marginal gain is much larger
  * E.g., larger number of participants in Internet, greater value to all participants
  
* Virtual company
  * Uses networks to link people, resources, and ally with other companies to create and distribute products without traditional organizational boundaries or physical locations

---

## Disruptive Technologies

* Technologies with disruptive impact on industries and businesses, rendering existing products, services and business models obsolete
  * Personal computers
  * World Wide Web
  * Internet music services
* First movers versus fast followers
  * First movers of disruptive technologies may fail to see potential, allowing second movers to reap rewards (fast followers)

---

## The Internet and Globalization

* Prior to the Internet, competing globally was only an option for huge firms able to afford factories, warehouses, and distribution centers abroad.
* The Internet drastically reduces costs of operating globally.
* Globalization benefits
  * Scale economies and resource cost reduction
  * Higher utilization rates, fixed capital costs, and lower cost per unit of production
  * Speeding time to market

---

## Figure 3.4 Apple i Phone’s Global Supply Chain

---

## Global Business and System Strategies

Domestic exporters

Multinationals

Franchisers

Transnationals

---

## Global System Configuration

Centralized systems

Duplicated systems

Decentralized systems

Networked systems

---

## Figure 3.5 Global Business Organization Systems Configurations

---
class: segue-red

# Quality and Business Processes

---

## What is Quality?

* Producer perspective
  * Conformance to specifications and absence of variation from specs
* Customer perspective
  * Physical quality (reliability), quality of service, psychological quality
* Total quality management (TQM)
  * Quality control is end in itself
  * All people, functions responsible for quality
* Six sigma
  * Measure of quality: 3.4 defects/million opportunities

---

## How Information Systems Improve Quality

* Reduce cycle time and simplify production
* Benchmark
* Use customer demands to improve products and services
* Improve design quality and precision
  * Computer-aided design (CAD) systems
* Improve production precision and tighten production tolerances

---

## What is Business Process Management (BPM)?

* Technology alone is often not enough to improve business
* Organizational changes often necessary
  * Minor changes in work habits
  * Redesigning entire business processes
* Aims to continuously improve processes
* Uses variety of tools and methodologies to
  * Understand existing processes
  * Design and optimize new processes

---

## Steps in BPM

Identify processes for change

Analyze existing processes

Design new process

Implement new process

Continuous measurement

---

## Figure 3.6 As-Is Business Process for Purchasing a Book from a Physical Bookstore

---

## Figure 3.7 Redesigned Process for Purchasing a Book Online

---

## Business Process Reengineering

A radical form of fast change

Not continuous improvement, but elimination of old processes, replacement with new processes, in a brief time period

Can produce dramatic gains in productivity

Can produce more organizational resistance to change

---
class: segue, left, bottom

# Ethics
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: video

---
class: agenda

Agenda
------

- [The ethical questions of Digital Transformation](#the-ethical-questions-of-digital-transformation)
- [The Basic Concepts of Ethics](#the-basic-concepts-of-ethics)
- [Ethics in the Real World](#ethics-in-the-real-world)
- [CLASS DISCUSSION: Hacking the Hospital](#class-discussion:-hacking-the-hospital)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 3 | [Pages: 91-NA](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=91)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives

__4.1__ What ethical, social, and political issues are raised by information systems?

__4.2__ What specific principles for conduct can be used to guide ethical decisions?

__4.3__ Why do contemporary information systems technology and the Internet pose challenges to the protection of individual privacy and intellectual property?

__4.4__ How have information systems affected laws for establishing accountability, liability, and the quality of everyday life?

__4.5__ How will MIS help my career?

---
class: segue-red, center, middle

# The ethical questions of Digital Transformation

---

## Video Cases

Case 1: What Net Neutrality Means for You

Case 2: Facebook and Google Privacy: What Privacy?

---

## Are Cars Becoming Big Brother on Wheels? (1 of 2)

* Problem
  * Vehicle and driver monitoring systems
  * Opportunities from new technology
  * Undeveloped legal environment
* Solutions
  * Increases safety
  * Increases efficiency
  * Creates need for new privacy protection laws and policies

Illustrates an IT-created ethical dilemma

Privacy vs. other values

Lack of meaningful privacy laws

---

## What Ethical, Social, and Political Issues are Raised by Information Systems?

* Recent cases of failed ethical judgment in business
  * Volkswagen AG, Wells Fargo, General Motors, Takata Corporation
  * In many, information systems used to bury decisions from public scrutiny
  
* Ethics
  * Principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviors

* Information systems raise new ethical questions because they create opportunities for:
  * Intense social change, threatening existing distributions of power, money, rights, and obligations
  * New kinds of crime

---

## A Model for Thinking About Ethical, Social, and Political Issues

* Society as a calm pond
* I Tas rock dropped in pond, creating ripples of new situations not covered by old rules
* Social and political institutions cannot respond overnight to these ripples—it may take years to develop etiquette, expectations, laws
  * Requires understanding of ethics to make choices in legally gray areas

---

## Figure 4.1 The Relationship Between Ethical, Social, and Political Issues in an Information Society

---

## Five Moral Dimensions of the Information Age

+ Information rights and obligations
+ Property rights and obligations
+ Accountability and control
+ System quality
+ Quality of life

---

## Key Technology Trends That Raise Ethical Issues

+ Computing power doubles every 18 months
+ Data storage costs rapidly decline
+ Data analysis advances
+ Networking advances
+ Mobile device growth impact

---

## Advances in Data Analysis Techniques

* Profiling
  * Combining data from multiple sources to create dossiers of detailed information on individuals
* Nonobvious relationship awareness (N O R A)
  * Combining data from multiple sources to find obscure hidden connections that might help identify criminals or terrorists

---

## Figure 4.2 Nonobvious Relationship Awareness (N O R A )

![](data:image/png;base64,#img/laudon_emis14_ppt_ch04_MS-ct2.jpg)

---
class: segue-red

# The Basic Concepts of Ethics

---

## Basic Concepts: Responsibility, Accountability, and Liability

* Responsibility
  * Accepting the potential costs, duties, and obligations for decisions
* Accountability
  * Mechanisms for identifying responsible parties
* Liability
  * Permits individuals (and firms) to recover damages done to them
* Due process
  * Laws are well-known and understood, with an ability to appeal to higher authorities

---

## Ethical Analysis

* Five-step process for ethical analysis
  * Identify and clearly describe the facts.
  * Define the conflict or dilemma and identify the higher-order values involved.
  * Identify the stakeholders.
  * Identify the options that you can reasonably take.
  * Identify the potential consequences of your options.

---

## Candidate Ethical Principles

* Golden Rule
  * Do unto others as you would have them do unto you.
  
* Immanuel Kant’s Categorical Imperative
  * If an action is not right for everyone to take, it is not right for anyone.
  
* Slippery Slope Rule
  * If an action cannot be taken repeatedly, it is not right to take at all.

* Utilitarian Principle
  * Take the action that achieves the higher or greater value.
  
* Risk Aversion Principle
  * Take the action that produces the least harm or potential cost.
  
* Ethical “No Free Lunch” Rule
  * Assume that virtually all tangible and intangible objects are owned by someone unless there is a specific declaration otherwise.

---

## Professional Codes of Conduct

* Promulgated by associations of professionals
  * American Medical Association (AMA)
  * American Bar Association (ABA)
  * Association for Computing Machinery (ACM)
* Promises by professions to regulate themselves in the general interest of society

---
class: segue-red, center, middle

# Ethics in the Real World

---

## Real-World Ethical Dilemmas

* One set of interests pitted against another
* Examples
  * Monitoring employees: right of company to maximize productivity of workers versus workers’ desire to use Internet for short personal tasks
  * Facebook monitors users and sells information to advertisers and app developers

---

## Information Rights: Privacy and Freedom in the Internet Age

* Privacy
  * Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or state; claim to be able to control information about yourself
* In the United States, privacy protected by:
  * First Amendment (freedom of speech and association)
  * Fourth Amendment (unreasonable search and seizure)
  * Additional federal statues (e.g., Privacy Act of 1974)

* Fair information practices
  * Set of principles governing the collection and use of information
    * Basis of most U.S. and European privacy laws
  * Used to drive changes in privacy legislation
    * COPPA
    * Gramm-Leach-Bliley Act
    * HIPAA

* FTCFIP principles
  * Notice/awareness (core principle)
  * Choice/consent (core principle)
  * Access/participation
  * Security
  * Enforcement

---

## European Directive on Data Protection

+ Requires unambiguous explicit informed consent of customer

+ EU member nations cannot transfer personal data to countries without similar privacy protection

+ Applies across all EU countries to any firms operating in EU or processing data on EU citizens or residents

+ Strengthens right to be forgotten

+ Privacy Shield : all countries processing EU data must conform to GDPR requirements

+ Heavy fines: 4% of global daily revenue

---

## Internet Challenges to Privacy

* Cookies
  * Identify browser and track visits to site
  * Super cookies (Flash cookies)
  
* Web beacons (web bugs)
  * Tiny graphics embedded in emails and web pages
  * Monitor who is reading email message or visiting site
  
* Spyware
  * Surreptitiously installed on user’s computer
  * May transmit user’s keystrokes or display unwanted ads
  
* Google services and behavioral targeting

* The United States allows businesses to gather transaction information and use this for other marketing purposes.

* Opt-out vs. opt-in model

* Online industry promotes self-regulation over privacy legislation.
  * Complex/ambiguous privacy statements
  * Opt-out models selected over opt-in
  * Online “seals” of privacy principles

---

## Figure 4.3 How Cookies Identify Web Visitors

![](data:image/png;base64,#img/laudon_emis14_ppt_ch04_MS-ct3.jpg)

The Web server reads the user's Web browser and determines the operating system, browser name, version number, Internet address, and other information.

The server transmits a tiny text file with user identification information called a cookie, which the user's browser receives and stores on the user's computer.

When the user returns to the Web site, the server requests the contents of any cookie it deposited previously in the user's computer.

The Web server reads the cookie, identifies the visitor, and calls up data on the user.

---

## Technical Solutions

* Solutions include:
  * Email encryption
  * Anonymity tools
  * Anti-spyware tools
  
* Overall, technical solutions have failed to protect users from being tracked from one site to another
  * Browser features
    * “Private” browsing
    * “Do not track” options

---

## Property Rights: Intellectual Property

* Intellectual property
  * Tangible and intangible products of the mind created by individuals or corporations
* Protected in four main ways:
  * Copyright
  * Patents
  * Trademarks
  * Trade secret

---

## Challenges to Intellectual Property Rights

* Digital media different from physical media
  * Ease of replication
  * Ease of transmission (networks, Internet)
  * Ease of alteration
  * Compactness
  * Difficulties in establishing uniqueness
* Digital Millennium Copyright Act (D M C A)

---
class: segue-red

# CLASS DISCUSSION: Hacking the Hospital

---

## A ransomware attack on a German hospital cost lives

Read and analyze the situation:
[https://parallaxview.ghost.io/the-parallax-view-130-new-direction/](https://parallaxview.ghost.io/the-parallax-view-130-new-direction/)
(https://apnews.com/article/technology-hacking-europe-cf8f8eee1adcec69bcc864f2c4308c94)

Form Groups around these three questions:

.question[What would you do from a technical perspective?]
.question[What should hospital management do?]
.question[Which laws could help avoid this situation in the future?]

---

## System Quality: Data Quality and System Errors

* What is an acceptable, technologically feasible level of system quality?
  * Flawless software is economically unfeasible
* Three principal sources of poor system performance
  * Software bugs, errors
  * Hardware or facility failures
  * Poor input data quality (most common source of business system failure)

---

## Quality of Life: Equity, Access, Boundaries

+ Negative social consequences of systems
+ Big tech: Concentrating economic and political power
+ Rapidity of change
+ Maintaining boundaries: family, work and leisure
+ Dependence and vulnerability

---

* Computer crime and abuse
  * Computer crime
  * Computer abuse
  * Spam
  * CAN-SPAMAct of 2003
  
* Employment
  * Trickle-down technology
  * Reengineering job loss

* Equity and access
  * The digital divide
  
* Health risks
  * Repetitive stress injury (RSI)
  * Carpal tunnel syndrome (CTS)
  * Computer vision syndrome (CVS)
  * Technostress

---

## Computer-Related Liability Problems

+ If software fails, who is responsible?
+ If seen as part of a machine that injures or harms, software producer and operator may be liable
+ If seen as similar to book, difficult to hold author/publisher responsible
+ If seen as a service, would this be similar to telephone systems not being liable for transmitted messages?

???

- What is free will and what is reason?

Who should be liable:
- The driver? (Nooo... didn't do anything...)
- The car company?
- The software engineer?
- The car itself?

Guiding Questions:
- Who owns the code and data center
- Where is the code executed?
- How much learning war involved in the process?
- When can we speak about free will?
  - Memories and distributed decision?
  - Did someone tell the car to do it or did it infer that

---
class: segue, left, bottom

# Infrastructure
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Infrastructure Components](#infrastructure-components)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter NA | [Pages: NA-119](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=NA)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

Learning Objectives
--------

__5.1__ What are the components of IT infrastructure?
__5.2__ What are the major computer hardware, data storage, input, and output technologies used in business and the major hardware trends?
__5.3__ What are the major types of computer software used in business and the major software trends?
__5.4__ What are the principal issues in managing hardware and software technology?
__5.5__ How will MIS help my career?

---

## Video Cases

Case 3 – Netflix: Building a Business in the Cloud

---

# Infrastructure Components

* IT infrastructure
  * Platform for supporting all information systems in the business
* Computer hardware
* Computer software
* Data management technology
* Networking and telecommunications technology
* Technology services

---

## Figure 5.1 I T Infrastructure Components

---

## Types of Computers

+ Personal computers and mobile devices
+ Workstations
+ Server
+ Mainframes
+ Supercomputers
+ Grid computing

---

## Client/Server Computing

* Form of distributed computing
* Splits processing between “clients” and “servers”
* Two-tiered client/server architecture
* Multi-tiered client/server architecture $N-tier$
  * Web servers
  * Application servers

---

## Figure 5.2 Client/Server Computing

---

## Figure 5.3 A Multitiered Client/Server Network (N-Tier)

---

## Storage, Input, and Output Technology

* Primary secondary storage technologies
  * Magnetic disk
    * SSDs
  * Optical disks
  * Magnetic tape
  * Storage networking: SANs
* Input devices
  * E.g. keyboard
* Output devices
  * E.g. monitor

---

## Contemporary Hardware Trends        (1 of 3)

* The mobile digital platform
  * Smartphones
  * Tablet computers
  * eText readers
* Consumerization of IT and BYOD
* Nanotechnology and quantum computing
* Virtualization
  * Software-defined storage $SDS$

---

## Interactive Session – Technology: Open Source Innovation: The New Competitive Advantage

* Class discussion
  * What is open source software? How is it different from proprietary software?
  * How can open source software support the healthcare industry in both administrative and medical processes?

---

## Examples of Nanotubes

©forance/123R F

---

## Contemporary Hardware Trends        (2 of 3)

* Cloud computing:
  * Computing resources obtained over the Internet
    * Infrastructure as a service $IaaS$
    * Software as a service $SaaS$
    * Platform as a service $PaaS$
  * Public vs. private clouds
  * Utility computing, on-demand computing
  * Hybrid cloud
  * Data storage security is in hands of provider

---

## Figure 5.4 Cloud Computing Platform

---

## Figure 5.5 Major Amazon Web Services

---

## Contemporary Hardware Trends        (3 of 3)

* Green computing
  * Green IT
  * Practices and technologies for minimizing impact on environment
* High-performance and power-saving processors
  * Multicore processors
  * Reduced power consumption

---

## Interactive Session – Organizations: Look to the Cloud

* Class discussion
  * What business benefits do cloud computing services provide? What problems do they solve?
  * What are the disadvantages of cloud computing?
  * What kinds of businesses are most likely to benefit from using cloud computing? Why?

---

## Figure 5.6 The Major Types of Software

---

## Operating System Software

* Software that controls computer activities
* G U Is
* Multitouch
* P Coperating systems
  * Windows, Mac
  * UNIX
  * Linux $open source$
* Mobile operating systems
  * Chrome, Android,iO S

---

## Application Software and Desktop Productivity Tools (1 of 2)

* Programming languages for business
  * C
  * C\+\+ - newer, object-oriented version of C
  * Visual Basic: Visual programming language forM SWindows applications
  * Java:O S-independent object-oriented programming language
    * Migrated to mobile applications, game machines, cableT Vsystems
    * Java Virtual Machine

* Software packages and desktop productivity tools
  * Word processing software
  * Spreadsheetsoftware
  * Data management software
  * Presentation graphics
  * Software suites
  * Web browsers

---

## HTML  and HTML5

* Hypertextmarkuplanguage $HTML$:
  * Page description language for specifying how elements are placed on a web page and for creating links to other pages and objects
* HTML5
  * Next evolution of HTML
  * Enables multimedia embedding without 3rd party plugins like Flash

---

## Web Services

* Software components that exchange information with one another using universal web communication standards and languages
* XML$eXtensibleMarkupLanguage$
  * Foundation of web services
* Service oriented architecture $SOA$
  * Collection of services used to build an organization’s software systems

---

## Figure 5.7 How Dollar Rent-A-Car Uses Web Services

---

## Software Trends

* Open source software
  * Linux, Apache
* Cloud-based software and tools
  * SaaS$software as a service$
    * Google Docs
  * Mashups
    * Zip Realty uses Google Maps and[Zillow.com](Zillow.com)
  * Apps
    * Mobile apps
  * Workstream Collaboration: Slack
  
---

## Capacity Planning and Scalability

* Capacity planning
  * Predicting when hardware system becomes saturated
  * Ensuring computing power for current and future needs
  * Factors include:
    * Maximum number of users
    * Impact of current, future software
    * Performance measures
* Scalability
  * Ability of system to expand to serve large number of users without breaking down

---

## Total Cost of Ownership (TCO) model

* Analyzing direct and indirect costs to determine the actual cost of owning a specific technology
  * Direct costs: hardware, software purchase costs
  * Indirect costs: on going administration costs, upgrades, maintenance, etc.
  * Hidden costs: support staff, downtime, etc.
* TCO can be reduced through increased centralization, standardization of hardware and software resources.

---

## Using Technology Service Providers

* Outsourcing
  * Using external provider to run computercenterand networks
  * Web hosting service
  * Offshore software outsourcing
  * Service level agreements $SLAs$
* Using cloud services
  * Appealing to businesses with smallerI Tbudgets
  * Pricing is per hour, per-use
  * Switching costs

---

## Managing Mobile Platforms

+ Mobile devices provide productivity gains
+ Expenses of equipping employees with devices
+ Network configuration
+ Software
+ Device security
+ Stolen or compromised devices
+ Mobile device management $MDM$ software

---

## Managing Software Localization for Global Business

* Software localization
  * Local language interfaces
  * Complex software interfaces
* Differences in local cultures
* Differences in business processes
* These factors add to TCO of using technology service providers

---

## How Will MIS Help My Career?

+ The Business: A1 Tech IT Consulting
+ Position Description
+ Job Requirements
+ Interview Questions

---
class: segue, left, bottom

# Business-Intelligence
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [What is a Database](#what-is-a-database)
- [Relational Databases](#relational-databases)
- [Database Management Systems (DBMS)](#database-management-systems-(dbms))
- [Non-Relational Databases](#non-relational-databases)
- [Blockchain](#blockchain)
- [Data Mining](#data-mining)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 4 | [Pages: 119-153](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=119)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives
-----------

__6.1__ What is a database, and how does a relational database organize data?

__6.2__ What are the principles of a database management system?

__6.3__ What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?

__6.4__ Why are information policy, data administration, and data 	quality assurance essential for managing the firm’s data 	resources?

__6.5__ How will MIS help my career?

---
class: segoe, middle, center

# What is a Database

---
## What Is a Database?

* Database:
  * Collection of related files containing records on people, places, or things
* Entity:
  * Generalized category representing person, place, thing
  * E.g., SUPPLIER, PART
* Attributes:
  * Specific characteristics of each entity:
    * SUPPLIER name, address
    * PART description, unit price, supplier

---
class: segue, middle, center

# Relational Databases

---

## Relational Databases

* Organize data into two-dimensional tables (relations) with columns and rows
* One table for each entity:
  * E.g., (CUSTOMER, SUPPLIER, PART, SALES)
  * Fields (columns) store data representing an attribute
  * Rows store data for separate records, or tuples
* Key field: uniquely identifies each record
* Primary key

---

## Figure 6.2 A Relational Database Table

---

## Figure 6.3 The PART Table

---

## Establishing Relationships (1 of 2)

* Entity-relationship diagram
  * Used to clarify table relationships in a relational database
* Relational database tables may have:
  * One-to-one relationship
  * One-to-many relationship
  * Many-to-many relationship
    * Requires “join table” or intersection relation that links the two tables to join information

---

## Figure 6.4 A Simple Entity-Relationship Diagram

---

## Establishing Relationships (2 of 2)

* Normalization
  * Streamlining complex groups of data
  * Minimizes redundant data elements
  * Minimizes awkward many-to-many relationships
  * Increases stability and flexibility
* Referential integrity rules
  * Ensure that relationships between coupled tables remain consistent

---

## Figure 6.5 Sample Order Report

---

## Figure 6.6 The Final Database Design with Sample Records

---

## Figure 6.7 Entity-Relationship Diagram for the Database with Four Tables

---
class: segue, center, middle

# Database Management Systems (DBMS)

---

## Database Management Systems (DBMS)

* Software for creating, storing, organizing, and accessing data from a database
* Separates the logical and physical views of the data
  * Logical view: how end users view data
  * Physical view: how data are actually structured and organized
* Examples: Microsoft Access, DB2, Oracle Database, MicrosoftSQL Server, MySQL

---

## Figure 6.8 Human Resources Database with Multiple Views

---

## Operations of a Relational DBMS

* Select:
  * Creates a subset of all records meeting stated criteria
* Join:
  * Combines relational tables to present the server with more information than is available from individual tables
* Project:
  * Creates a subset consisting of columns in a table
  * Permits user to create new tables containing only desired information

---

## Figure 6.9 The Three Basic Operations of a Relational DBMS

---

## Capabilities of Database Management Systems

* Data definition capabilities:
  * Specify structure of content of database
* Data dictionary:
  * Automated or manual file storing definitions of data elements and their characteristics
* Querying and reporting:
  * Data manipulation language
    * Structured query language (S Q L)
    * Microsoft Access query-building tools
  * Report generation, e.g., Crystal Reports

---

## Figure 6.10 Access Data Dictionary Features

---

## Figure 6.11 Example of an S Q L Query

SELECT PART.Part_Number, PART.Part_Name, SUPPLIER.Supplier_Number,

SUPPLIER.Supplier_Name

FROM PART, SUPPLIER

WHERE PART.Suplier_Number = SUPPLIER.Supplier_Number AND

Part_Number = 137 OR Part_Number = 150;

---

## Figure 6.12 An Access Query

---
class: segue, center, middle

# Non-Relational Databases

---

## Non-Relational Databases

* “NoSQL”
* Handle large data sets of data that are not easily organized into tables, columns, and rows
* Use more flexible data model
  * Don’t require extensive structuring
* Can manage unstructured data, such as social media and graphics
* E.g. Amazon’s SimpleDB, MetLife’s MongoDB

---

## Cloud Databases and Distributed Databases

* Relational database engines provided by cloud computing services
  * Pricing based on usage
  * Appeal to small or medium-sized businesses
* Amazon Relational Database Service
  * Offers MySQL, MicrosoftSQL Server, Oracle Database engines
* Distributed databases
  * Stored in multiple physical locations
  * Google’s Spanner cloud service

---

## The Challenge of Big Data

* Massive quantities of unstructured and semi-structured data from Internet and more
  * 3Vs: Volume, variety, velocity
  * Petabytes and exabytes
* Big datasets offer more patterns and insights than smaller datasets, e.g.
  * Customer behavior
  * Weather patterns
* Requires new technologies and tools

---

## Interactive Session – The Paradise Papers and Big Data Journalism

* Class Discussion
  * Why was it a challenge to place all the documents from the Paradise Papers in one database?
  * Protecting the identity of a whistleblower or whistleblowers is of vital importance to journalists. Give at least one reason why this is so important.
  * Explain why cooperation between data experts and journalists was vital to the efficient analysis of data.
  * News outlets have been experiencing a severe crisis of profitability. What do you think are the causes of this crisis? What role can big data analytics play in countering it?

---
class: segue, center, middle

# Blockchain

---

## Blockchain

+ Distributed database of transactions
+ Operates on a network without central authority
+ Maintains a growing list of records called blocks
+ Once recorded, blocks cannot be changed
+ Reduces cost of processing transactions and enhances security

---

## Figure 6.13 How Blockchain Works

---

## Business Intelligence Infrastructure

* Array of tools for obtaining useful information from internal and external systems and big data
  * Data warehouses
  * Data marts
  * Hadoop
  * In-memory computing
  * Analytical platforms

---

## Data Warehouses

* Data warehouse:
  * Database that stores current and historical data that may be of interest to decision makers
  * Consolidates and standardizes data from many systems, operational and transactional databases
  * Data can be accessed but not altered
* Data mart:
  * Subset of data warehouses that is highly focused and isolated for a specific population of users

---

## Hadoop

* Open-source software framework for big data
* Breaks data task into sub-problems and distributes the processing to many inexpensive computer processing nodes
* Combines result into smaller data set that is easier to analyze
* Key services
  * Hadoop Distributed File System (H D F S)
  * MapReduce

---

## In-Memory Computing

+ Relies on computer’s main memory (RAM) for data storage
+ Eliminates bottlenecks in retrieving and reading data
+ Dramatically shortens query response times
+ Enabled by high-speed processors, multicore processing
+ Lowers processing costs

---

## Analytic Platforms

* Preconfigured hardware-software systems
* Designed for query processing and analytics
* Use both relational and non-relational technology to analyze large data sets
* Include in-memory systems, NoS Q LD B M S
* E.g.I B MPure Data System for Analytics
  * Integrated database, server, storage components
* Data lakes

---

## Figure 6.14 Business Intelligence Technology Infrastructure

---

## Analytical Tools: Relationships, Patterns, Trends

* Once data is gathered, tools are required for consolidating, analyzing, to use insights to improve decision making
  * Software for database querying and reporting
  * Multidimensional data analysis (OLAP)
  * Data mining

---

## Online Analytical Processing (OLAP)

* Supports multidimensional data analysis, enabling users to view the same data in different ways using multiple dimensions
  * Each aspect of information—product, pricing, cost, region, or time period—represents a different dimension
  * E.g., comparing sales in East in June versus May and July
* Enables users to obtain online answers to ad hoc questions such as these in a fairly rapid amount of time

---

## Figure 6.15 Multidimensional Data Model

---
class: segue, center, middle

# Data Mining

---

## Data Mining

* Finds hidden patterns and relationships in large databases and infers rules from them to predict future behavior
* Types of information obtainable from data mining
  * Associations: occurrences linked to single event
  * Sequences: events linked over time
  * Classifications: patterns describing a group an item belongs to
  * Clustering: discovering as yet unclassified groupings
  * Forecasting: uses series of values to forecast future values

---

## Text Mining

* Unstructured data (mostly text files) accounts for 80 percent of an organization’s useful information.
* Text mining allows businesses to extract key elements from, discover patterns in, and summarize large unstructured data sets.
* Sentiment analysis
  * Mines online text comments online or in email to measure customer sentiment

---

## Web Mining

* Discovery and analysis of useful patterns and information from the web
  * E.g. to understand customer behavior, evaluate website, quantify success of marketing
* Content mining – mines content of websites
* Structure mining – mines website structural elements, such as links
* Usage mining – mines user interaction data gathered by web servers

---

## Databases and the Web

* Firms use the web to make information from their internal databases available to customers and partners.
* Middleware and other software make this possible
  * Web server
  * Application servers orC G I
  * Database server
* Web interfaces provide familiarity to users and savings over redesigning legacy systems.

---

## Figure 6.16 Linking Internal Databases to the Web

---

## Establishing an Information Policy

* Information policy
  * States organization’s rules for organizing, managing, storing, sharing information
* Data administration
  * Responsible for specific policies and procedures through which data can be managed as a resource
* Database administration
  * Database design and management group responsible for defining and organizing the structure and content of the database, and maintaining the database.

---

## Ensuring Data Quality

* Poor data quality: major obstacle to successful customer relationship management
* Data quality problems caused by:
  * Redundant and inconsistent data produced by multiple systems
  * Data input errors
* Data quality audit
* Data cleansing

---
class: segue, left, bottom

# Networking
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Networking and Communication Trends](#networking-and-communication-trends)
- [What Is the Internet?](#what-is-the-internet?)
- [The Web](#the-web)
- [The Future Web](#the-future-web)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 5 | [Pages: 153-185](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=153)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

Learning Objectives
-----------

__7.1__ What are the principal components of telecommunications networks and key networking technologies?

__7.2__ What are the different types of networks?

__7.3__ How do the Internet and Internet technology work, and how do they support communication and e-business?

__7.4__ What are the principal technologies and standards for wireless networking, communication, and Internet access?

---

# Networking and Communication Trends

* Convergence
  * Telephone networks and computer networks converging into single digital network using Internet standards
* Broadband
  * The majority of U.S. households now have broadband access
* Broadband wireless
  * Voiceand data communications now exclusively use broadband cable and wireless platforms

---

## What Is a Computer Network?

* Two or more connected computers
* Major components in simple network
  * Client and server computers
  * Network interfaces (NICs)
  * Connection medium
  * Network operating system (NOS)
  * Hubs, switches, routers
* Software-defined networking (SDN)
  * Functions of switches and routers managed by central program

---

## Figure 7.1 Components of a Simple Computer Network

---

## Networks in Large Companies

* Hundreds of local area networks (LANs) linked to firm-wide corporate network
* Various powerful servers
  * Website, corporate intranet, extranet
  * Backend systems
* Mobile wirelessL A Ns (Wi-Fi networks)
* Videoconferencing system
* Telephone network, wireless cell phones

---

## Figure 7.2 Corporate Network Infrastructure

---

## Key Digital Networking Technologies (1 of 3)

* Client/server computing
  * Distributed computing model
  * Clients linked through network controlled by network server computer
  * Server sets rules of communication for network and provides every client with an address so others can find it on the network
  * Has largely replaced centralized mainframe computing
  * The Internet: largest implementation of client/server computing

* Packet switching
  * Method of slicing digital messages into parcels (packets), sending packets along different communication paths as they become available, and then reassembling packets at destination
  * Previous circuit-switched networks required assembly of complete point-to-point circuit
  * Packet switching more efficient use of network’s communications capacity

---

## Figure 7.3 Packet-Switched Networks and Packet Communications

---

## Key Digital Networking Technologies (3 of 3)

* T C P/I Pand connectivity
  * Protocols: rules that govern transmission of information between two points
  * Transmission Control Protocol/Internet Protocol (T C P/ IP)
    * Common worldwide standard that is basis for the Internet
  * Department of Defense reference model forT C P/ IP
    * Four layers
      * Application layer
      * Transport layer
      * Internet layer
      * Network interface layer

---

## Figure 7.4 The Transmission Control Protocol/Internet Protocol (TCP/IP) Reference Model

---

## Types of Networks

* Signals: Digital versus analog
  * Modem: translates digital signals into analog form (and vice versa)
* Types of networks
  * Local area networks (L A Ns)
    * Ethernet
    * Client/server vs. peer-to-peer
  * Wide area networks (W A Ns)
  * Metropolitan area networks (M A Ns)
  * Campus area networks (C A Ns)

---

## Figure 7.5 Functions of the Modem

---

## Transmission Media and Transmission Speed

* Physical transmission media
  * Twisted pair wire (CAT5)
  * Coaxial cable
  * Fiber optics cable
  * Wireless transmission media and devices
    * Satellites
    * Cellular systems
* Transmission speed
  * Bits per second (b ps)
  * Hertz
  * Bandwidth

---

# What Is the Internet?

* The Internet
  * World’s most extensive network
  * Internet service providers (I S Ps)
    * Provide connections
    * Types of Internet connections
      * Dial-up: 56.6K b ps
      * Digital subscriber line (D SL/F I OS): 385K b ps –40M b ps
      * Cable Internet connections: 1–50M b ps
      * Satellite
      * T1/T3 lines: 1.54–45M b ps

---

## Internet Addressing and Architecture

* Each device on Internet assigned Internet Protocol (IP) address
* 32-bit number, e.g. 207.46.250.119
* The Domain Name System (DNS)
  * Converts IP addresses to domain names
  * Hierarchical structure
  * Top-level domains

---

## Figure 7.6 The Domain Name System

---

## Internet Architecture and Governance

* Network service providers
  * Own trunk lines (high-speed backbone networks)
* Regional telephone and cable T V companies
  * Provide regional and local access
* Professional organizations and government bodies establish Internet standards
  * IAB
  * ICANN
  * W3C

---

## Figure 7.7 Internet Network Architecture

---

## The Future Internet: IPv6 and Internet 2

* IPv6
  * New addressing scheme for IP numbers
  * Will provide more than a quadrillion new addresses
  * Not compatible with current IPv5 addressing
* Internet2
  * Advanced networking consortium
    * Universities, businesses, government agencies, other institutions
  * Developed high-capacity 100 Gbps testing network
  * Testing leading-edge new technologies for Internet

---

## Internet Services and Communication Tools (1 of 2)

* Internet services
  * Email
  * Chatting and instant messaging
  * Newsgroups
  * Telnet
  * File Transfer Protocol (F TP)
  * World Wide Web
* Voice overI P(V o IP)
  * Digital voice communication usingIP, packet switching

---

## Figure 7.8 Client/Server Computing on the Internet

---

## Internet Services and Communication Tools (2 of 2)

* Unified communications
  * Communications systems that integrate voice, data, email, conferencing
* Virtual private network (VPN)
  * Secure, encrypted, private network run over Internet
  * PPTP
  * Tunneling

---

## Figure 7.9 How Voice over IP Works

---

## Interactive Session – Management: Singapore Shuts Down 2G Network

* Class discussion
  * What do 2G, 3G, and 4G refer to? Explain one difference among them.
  * What is meant by “wireless spectrum” and “spectrum crunch”? What measures were taken to alleviate the spectrum scarcity?
  * The decision to shut down 2G was easy technically but hard in terms of implementation.” Do you agree with this statement? Why or why not?

---

## Figure 7.10 A Virtual Private Network Using the Internet

---

# The Web

* Hypertext
  * Hypertext Markup Language (HTML)
  * Hypertext Transfer Protocol (HTTP):
  * Uniform resource locator example (URL):

* [http://www.megacorp.com/content/features/082602.html](http://www.megacorp.com/content/features/082602.html)

* Web servers
    * Software for locating and managing web pages

---

## Searching for Information on the Web

+ Mobile search

+ Semantic search

+ Social search

+ Visual search

+ Intelligent agent shopping bots

+ Search engine marketing

+ Search engine optimization (SEO)

---

## Figure 7.11 Top Desktop/Laptop Web Search Engines Worldwide

---

## Figure 7.12 How Google Works

---

## Sharing Information on the Web

+ Blogs

+ RSS

+ Wikis

+ Social networking

---

# The Future Web

+ More tools to make sense of trillions of pages on the Internet

+ Pervasive web

+ Internet of Things (I oT)

+ Internet of People

+ App Internet

+ Increased cloud computing andS a aS

+ Ubiquitous mobile connectivity

+ Greater seamlessness of web as a whole

---

## Cellular Systems (1 of 2)

* Competing standards
  * CDMA : United States only
  * GSM: Rest of world,AT&T, T-Mobile
* Third-generation (3G) networks
  * 144 kbps
  * Suitable for email access, web browsing

* Fourth-generation (4G) networks
  * Up to 100 Mbps
  * Suitable for email access, web browsing, Internet video
  * LTE and Wi Max

* 5G networks
  * Gigabit capacity
  * Currently under development and field testing

---

## Wireless Computer Networks and Internet Access (1 of 2)

* Bluetooth (802.15)
  * Links up to 8 devices in a 10-m area using low-power, radio-based communication
  * Useful for personal networking (PANs) s
* Wi-Fi(802.11)
  * Set of standards: 802.11
  * Used for wireless LAN and wireless Internet access
  * Use access points: device with radio receiver/transmitter for connecting wireless devices to a wired LAN

* Wi-Fi (802.11) continued
  * Hotspots: one or more access points in public place to provide maximum wireless coverage for a specific area
  * Weak security features
* W iMax (802.16)
  * Wireless access range of 31 miles
  * RequireW i M a xantennas

---

## Figure 7.13 A Bluetooth Network (PAN)

---

## Figure 7.14 An 802.11 Wireless LAN

---

## Radio Frequency Identification (RFID)

* Use tiny tags with microchips containing data about an item and location
* Tag antennas to transmit radio signals over short distances to specialR F ID readers
* Common uses:
  * Automated toll-collection
  * Tracking goods in a supply chain
* Reduction in cost of tags making RFID viable for many firms

---

## Figure 7.15 How RFID Works

---

## Wireless Sensor Networks (WSNs)

+ Networks of hundreds or thousands of interconnected wireless devices

+ Used to monitor building security, detect hazardous substances in air, monitor environmental changes, traffic, or military activity

+ Devices have built-in processing, storage, and radio frequency sensors and antennas

+ Require low-power, long-lasting batteries and ability to endure in the field without maintenance

+ Major sources of “Big Data” and fueling “Internet of Things”

---

## Figure 7.16 A Wireless Sensor Network

---
class: segue, left, bottom

# Security
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Video Cases](#video-cases)
- [The Electric Power Grid Becomes a Cyberwarfare Battleground (1 of 2)](#the-electric-power-grid-becomes-a-cyberwarfare-battleground-(1-of-2))
- [Why Systems Are Vulnerable (1 of 2)](#why-systems-are-vulnerable-(1-of-2))
- [Figure 8.1 Contemporary Security Challenges and Vulnerabilities](#figure-8.1-contemporary-security-challenges-and-vulnerabilities)
- [Internet Vulnerabilities](#internet-vulnerabilities)
- [Wireless Security Challenges](#wireless-security-challenges)
- [Malicious Software: Viruses, Worms, Trojan Horses, and Spyware (1 of 2)](#malicious-software:-viruses,-worms,-trojan-horses,-and-spyware-(1-of-2))
- [Hackers and Computer Crime (1 of 3)](#hackers-and-computer-crime-(1-of-3))
- [Hackers and Computer Crime (2 of 3)](#hackers-and-computer-crime-(2-of-3))
- [Hackers and Computer Crime (3 of 3)](#hackers-and-computer-crime-(3-of-3))
- [Internal Threats: Employees](#internal-threats:-employees)
- [Software Vulnerability](#software-vulnerability)
- [What Is the Business Value of Security and Control?](#what-is-the-business-value-of-security-and-control?)
- [Interactive Session – Technology: Meltdown and Spectre Haunt the World’s Computers](#interactive-session-–-technology:-meltdown-and-spectre-haunt-the-world’s-computers)
- [Legal and Regulatory Requirements for Electronic Records Management](#legal-and-regulatory-requirements-for-electronic-records-management)
- [Electronic Evidence and Computer Forensics](#electronic-evidence-and-computer-forensics)
- [Information Systems Controls](#information-systems-controls)
- [Risk Assessment](#risk-assessment)
- [Table 8.5 Online Order Processing Risk Assessment](#table-8.5-online-order-processing-risk-assessment)
- [Security Policy](#security-policy)
- [Figure 8.2 Access Rules for a Personnel System](#figure-8.2-access-rules-for-a-personnel-system)
- [Disaster Recovery Planning and Business Continuity Planning](#disaster-recovery-planning-and-business-continuity-planning)
- [The Role of Auditing](#the-role-of-auditing)
- [Figure 8.3 Sample Auditor’s List of Control Weaknesses](#figure-8.3-sample-auditor’s-list-of-control-weaknesses)
- [Tools and Technologies for Safeguarding Information Systems   (1 of 3)](#tools-and-technologies-for-safeguarding-information-systems---(1-of-3))
- [Tools and Technologies for Safeguarding Information Systems   (1 of 3)](#tools-and-technologies-for-safeguarding-information-systems---(1-of-3))
- [Figure 8.4 A Corporate Firewall](#figure-8.4-a-corporate-firewall)
- [Tools and Technologies for Safeguarding Information Systems   (3 of 3)](#tools-and-technologies-for-safeguarding-information-systems---(3-of-3))
- [Securing Wireless Networks](#securing-wireless-networks)
- [Encryption and Public Key Infrastructure (1 of 3)](#encryption-and-public-key-infrastructure-(1-of-3))
- [Encryption and Public Key Infrastructure (2 of 3)](#encryption-and-public-key-infrastructure-(2-of-3))
- [Figure 8.5 Public Key Encryption](#figure-8.5-public-key-encryption)
- [Encryption and Public Key Infrastructure (3 of 3)](#encryption-and-public-key-infrastructure-(3-of-3))
- [Figure 8.6 Digital Certificates](#figure-8.6-digital-certificates)
- [Securing Transactions with Blockchain](#securing-transactions-with-blockchain)
- [Ensuring System Availability](#ensuring-system-availability)
- [Security Issues for Cloud Computing and the Mobile Digital Platform (1 of 2)](#security-issues-for-cloud-computing-and-the-mobile-digital-platform-(1-of-2))
- [Security Issues for Cloud Computing and the Mobile Digital Platform (2 of 2)](#security-issues-for-cloud-computing-and-the-mobile-digital-platform-(2-of-2))
- [Ensuring Software Quality](#ensuring-software-quality)
- [Interactive Session – Organizations: Phishing for Money: Dangerous Emails](#interactive-session-–-organizations:-phishing-for-money:-dangerous-emails)
- [How Will M  I  S Help My Career?](#how-will-m--i--s-help-my-career?)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 6 | [Pages: 185-213](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=185)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

Learning Objectives
-----------

__8\.1__ Why are information systems vulnerable to destruction, error, and abuse?
__8\.2__ What is the business value of security and control?
__8\.3__ What are the components of an organizational framework for security and control?
__8\.4__ What are the most important tools and technologies for safeguarding information resources?
__8\.5__ How will MIS help my career?

---

## Video Cases

Case 1: Stuxnet and Cyberwarfare

Case 2: Cyberespionage: The Chinese Threat

Instructional Video 1: Sony PlayStation Hacked; Data Stolen from 77 Million Users

Instructional Video 2: Meet the Hackers: Anonymous Statement on Hacking Sony

---

## The Electric Power Grid Becomes a Cyberwarfare Battleground (1 of 2)

* Problem
  * Large complex infrastructure
  * Numerous access points
  * Uneven security
* Solutions
  * Malware detection
  * Social engineering education
  * Multifactor authentication

Hackers took advantage of uneven security and controls and loose management structure to attack theU\.S\. power grid

Demonstrates vulnerabilities in information technology systems

Illustrates some of the reasons organizations need to pay special attention to information system security

---

## Why Systems Are Vulnerable (1 of 2)

* Security
  * Policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems
* Controls
  * Methods, policies, and organizational procedures that ensure safety of organization’s assets; accuracy and reliability of its accounting records; and operational adherence to management standards

Accessibility of networks

Hardware problems (breakdowns, configuration errors, damage from improper use or crime)

Software problems (programming errors, installation errors, unauthorized changes)

Disasters

Use of networks/computers outside of firm’s control

Loss and theft of portable devices

---

## Figure 8.1 Contemporary Security Challenges and Vulnerabilities

---

## Internet Vulnerabilities

* Network open to anyone
* Size of Internet means abuses can have wide impact
* Use of fixed Internet addresses with cable /D SL modems creates fixed targets for hackers
* UnencryptedV O IP
* Email, P2P,IM
  * Interception
  * Attachments with malicious software
  * Transmitting trade secrets

---

## Wireless Security Challenges

* Radio frequency bands easy to scan
* S S IDs (service set identifiers)
  * Identify access points, broadcast multiple times, can be identified by sniffer programs
* War driving
  * Eavesdroppers drive by buildings and try to detectS S ID and gain access to network and resources
  * Once access point is breached, intruder can gain access to networked drives and files
* Rogue access points

---

## Malicious Software: Viruses, Worms, Trojan Horses, and Spyware (1 of 2)

* Malware (malicious software)
* Viruses
* Worms
* Worms and viruses spread by
  * Downloads and drive-by downloads
  * Email,IM attachments
* Mobile device malware
* Social network malware

* Trojan horse
* S QL injection attacks
* Ransomware
* Spyware
  * Key loggers
  * Other types
    * Reset browser home page
    * Redirect search requests
    * Slow computer performance by taking up memory

---

## Hackers and Computer Crime (1 of 3)

* Hackers vs crackers
* Activities include:
  * System intrusion
  * System damage
  * Cybervandalism
    * Intentional disruption, defacement, destruction of website or corporate information system
* Spoofing and sniffing

---

## Hackers and Computer Crime (2 of 3)

* Denial-of-service attacks (DoS)
* Distributed denial-of-service attacks (DDoS)
* Botnets
* Spam
* Computer crime
  * Computer may be target of crime
  * Computer may be instrument of crime

---

## Hackers and Computer Crime (3 of 3)

* Identity theft
  * Phishing
  * Evil twins
  * Pharming
* Click fraud
* Cyberterrorism
* Cyberwarfare

---

## Internal Threats: Employees

* Security threats often originate inside an organization
* Inside knowledge
* Sloppy security procedures
  * User lack of knowledge
* Social engineering
* Both end users and information systems specialists are sources of risk

---

## Software Vulnerability

* Commercial software contains flaws that create security vulnerabilities
  * Bugs (program code defects)
  * Zero defects cannot be achieved
  * Flaws can open networks to intruders
* Zero-day vulnerabilities
* Patches
  * Small pieces of software to repair flaws
  * Patch management

---

## What Is the Business Value of Security and Control?

* Failed computer systems can lead to significant or total loss of business function
* Firms now are more vulnerable than ever
  * Confidential personal and financial data
  * Trade secrets, new products, strategies
* A security breach may cut into a firm’s market value almost immediately
* Inadequate security and controls also bring forth issues of liability

---

## Interactive Session – Technology: Meltdown and Spectre Haunt the World’s Computers

* Class discussion
  * How dangerous are Spectre and Meltdown? Explain your answer\.
  * Compare the threats of Spectre and Meltdown to cloud computing centers, corporate data centers, and individual computer and smartphone users\.
  * How would you protect against Spectre and Meltdown if you were running a public cloud computing center, if you ran a corporate data center, and if you were an individual computer user?

---

## Legal and Regulatory Requirements for Electronic Records Management

* H I P AA
  * Medical security and privacy rules and procedures
* Gramm-Leach-Bliley Act
  * Requires financial institutions to ensure the security and confidentiality of customer data
* Sarbanes-Oxley Act
  * Imposes responsibility on companies and their management to safeguard the accuracy and integrity of financial information that is used internally and released externally

---

## Electronic Evidence and Computer Forensics

* Electronic evidence
  * Evidence for white collar crimes often in digital form
  * Proper control of data can save time and money when responding to legal discovery request
* Computer forensics
  * Scientific collection, examination, authentication, preservation, and analysis of data from computer storage media for use as evidence in court of law
  * Recovery of ambient data

---

## Information Systems Controls

* May be automated or manual
* General controls
  * Govern design, security, and use of computer programs and security of data files in general throughout organization
  * Software controls, hardware controls, computer operations controls, data security controls, system development controls, administrative controls,
* Application controls
  * Controls unique to each computerized application
  * Input controls, processing controls, output controls

---

## Risk Assessment

* Determines level of risk to firm if specific activity or process is not properly controlled
  * Types of threat
  * Probability of occurrence during year
  * Potential losses, value of threat
  * Expected annual loss

---

## Table 8.5 Online Order Processing Risk Assessment

---

## Security Policy

* Ranks information risks, identifies security goals and mechanisms for achieving these goals
* Drives other policies
* Acceptable use policy (A UP)
  * Defines acceptable uses of firm’s information resources and computing equipment
* Identity management
  * Identifying valid users
  * Controlling access

---

## Figure 8.2 Access Rules for a Personnel System

---

## Disaster Recovery Planning and Business Continuity Planning

* Disaster recovery planning
  * Devises plans for restoration of disrupted services
* Business continuity planning
  * Focuses on restoring business operations after disaster
* Both types of plans needed to identify firm’s most critical systems
  * Business impact analysis to determine impact of an outage
  * Management must determine which systems restored first

---

## The Role of Auditing

* Information systems audit
  * Examines firm’s overall security environment as well as controls governing individual information systems
* Security audits
  * Review technologies, procedures, documentation, training, and personnel
  * May even simulate disaster to test responses
* List and rank control weaknesses and the probability of occurrence
* Assess financial and organizational impact of each threat

---

## Figure 8.3 Sample Auditor’s List of Control Weaknesses

---

## Tools and Technologies for Safeguarding Information Systems   (1 of 3)

* Identity management software
  * Automates keeping track of all users and privileges
  * Authenticates users, protecting identities, controlling access
* Authentication
  * Password systems
  * Tokens
  * Smart cards
  * Biometric authentication
  * Two-factor authentication

---

## Tools and Technologies for Safeguarding Information Systems   (1 of 3)

* Firewall
  * Combination of hardware and software that prevents unauthorized users from accessing private networks
  * Packet filtering
  * Stateful inspection
  * Network address translation (N AT)
  * Application proxy filtering

---

## Figure 8.4 A Corporate Firewall

---

## Tools and Technologies for Safeguarding Information Systems   (3 of 3)

* Intrusion detection system
  * Monitors hot spots on corporate networks to detect and deter intruders
* Antivirus and antispyware software
  * Checks computers for presence of malware and can often eliminate it as well
  * Requires continual updating
* Unified threat management (U TM) systems

---

## Securing Wireless Networks

* W EP security
  * Static encryption keys are relatively easy to crack
  * Improved if used in conjunction withV PN
* W P A2 specification
  * ReplacesW EP with stronger standards
  * Continually changing, longer encryption keys

---

## Encryption and Public Key Infrastructure (1 of 3)

* Encryption
  * Transforming text or data into cipher text that cannot be read by unintended recipients
  * Two methods for encryption on networks
    * Secure Sockets Layer (S SL) and successor Transport Layer Security (T LS)
    * Secure Hypertext Transfer Protocol (S-H T TP)

---

## Encryption and Public Key Infrastructure (2 of 3)

* Two methods of encryption of messages
  * Symmetric key encryption
    * Sender and receiver use single, shared key
  * Public key encryption
    * Uses two, mathematically related keys: public key and private key
    * Sender encrypts message with recipient’s public key
    * Recipient decrypts with private key

---

## Figure 8.5 Public Key Encryption

---

## Encryption and Public Key Infrastructure (3 of 3)

* Digital certificate
  * Data file used to establish the identity of users and electronic assets for protection of online transactions
  * Uses a trusted third party, certification authority (CA), to validate a user's identity
  * CA verifies user’s identity, stores information inCA server, which generates encrypted digital certificate containing ownerID information and copy of owner’s public key
* Public key infrastructure (PKI)
  * Use of public key cryptography working with certificate authority
  * Widely used in e-commerce

---

## Figure 8.6 Digital Certificates

---

## Securing Transactions with Blockchain

+ Secure transaction database
+ Encryption used to verify users and transactions
+ Decentralized
+ Records cannot be changed

---

## Ensuring System Availability

* Online transaction processing requires 100% availability
* Fault-tolerant computer systems
  * Contain redundant hardware, software, and power supply components that create an environment that provides continuous, uninterrupted service
* Deep packet inspection
* Security outsourcing
  * Managed security service providers (MSSPs)

---

## Security Issues for Cloud Computing and the Mobile Digital Platform (1 of 2)

* Security in the cloud
  * Responsibility for security resides with company owning the data
  * Firms must ensure providers have adequate protection:
    * Where data are stored
    * Meeting corporate requirements, legal privacy laws
    * Segregation of data from other clients
    * Audits and security certifications
  * Service level agreements (SLAs)

---

## Security Issues for Cloud Computing and the Mobile Digital Platform (2 of 2)

* Securing mobile platforms
  * Security policies should include and cover any special requirements for mobile devices
    * Guidelines for use of platforms and applications
  * Mobile device management tools
    * Authorization
    * Inventory records
    * Control updates
    * Lock down/erase lost devices
    * Encryption
  * Software for segregating corporate data on devices

---

## Ensuring Software Quality

* Software metrics: Objective assessments of system in form of quantified measurements
  * Number of transactions
  * Online response time
  * Payroll checks printed per hour
  * Known bugs per hundred lines of code
* Early and regular testing
* Walkthrough: Review of specification or design document by small group of qualified people
* Debugging: Process by which errors are eliminated

---

## Interactive Session – Organizations: Phishing for Money: Dangerous Emails

* Class discussion
  * Explain the difference between spear phishing and bulk phishing\. Which is most difficult to spot by victims, and why?
  * What factors should a CEO duped by hackers take into consideration before deciding to contact the police?
  * Do you think that not adding attachments to emails will help protect companies against phishing stacks?
  * Give two pieces of advice to a company or individual on increasing protection against a phishing attack\.

---

## How Will M  I  S Help My Career?

+ The Company: No\. 1 Value Supermarkets
+ Position Description: Identity access and management support specialist, entry-level
+ Job Requirements
+ Interview Questions
+ Author Tips

---
class: segue, left, bottom

# Enterprise-Applications
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Learning Objectives](#learning-objectives)
- [Video Cases](#video-cases)
- [Warehouse Management at Norauto: Conversational Commerce (1 of 2)](#warehouse-management-at-norauto:-conversational-commerce-(1-of-2))
- [Enterprise Systems](#enterprise-systems)
- [Figure 9.1 How Enterprise Systems Work](#figure-9.1-how-enterprise-systems-work)
- [Enterprise Software](#enterprise-software)
- [Business Value of Enterprise Systems](#business-value-of-enterprise-systems)
- [The Supply Chain](#the-supply-chain)
- [Figure 9.2 Nike’s Supply Chain](#figure-9.2-nike’s-supply-chain)
- [Supply Chain Management](#supply-chain-management)
- [Figure 9.3 The Bullwhip Effect](#figure-9.3-the-bullwhip-effect)
- [Supply Chain Management Software](#supply-chain-management-software)
- [Global Supply Chains and the Internet](#global-supply-chains-and-the-internet)
- [Demand-Driven Supply Chains: From Push to Pull Manufacturing and Efficient Customer Response](#demand-driven-supply-chains:-from-push-to-pull-manufacturing-and-efficient-customer-response)
- [Figure 9.4 Push- Versus Pull-Based Supply Chain Models](#figure-9.4-push--versus-pull-based-supply-chain-models)
- [Figure 9.5 The Emerging Internet-Driven Supply Chain](#figure-9.5-the-emerging-internet-driven-supply-chain)
- [Business Value of Supply Chain Management Systems](#business-value-of-supply-chain-management-systems)
- [Interactive Session – Organizations: Soma Bay Prospers with E R P in the Cloud](#interactive-session-–-organizations:-soma-bay-prospers-with-e-r-p-in-the-cloud)
- [Customer Relationship Management](#customer-relationship-management)
- [Figure 9.6 Customer Relationship Management (C R M)](#figure-9.6-customer-relationship-management-(c-r-m))
- [Customer Relationship Management Software (1 of 2)](#customer-relationship-management-software-(1-of-2))
- [Figure 9.7 How C R M Systems Support Marketing](#figure-9.7-how-c-r-m-systems-support-marketing)
- [Figure 9.8 C R M Software Capabilities](#figure-9.8-c-r-m-software-capabilities)
- [Figure 9.9 Customer Loyalty Management Process Map](#figure-9.9-customer-loyalty-management-process-map)
- [Operational and Analytical C R M](#operational-and-analytical-c-r-m)
- [Figure 9.10 Analytical C R M](#figure-9.10-analytical-c-r-m)
- [Interactive Session – People: CRM Helps Adidas Know Its Customers One Shoe Buyer at a Time](#interactive-session-–-people:-crm-helps-adidas-know-its-customers-one-shoe-buyer-at-a-time)
- [Business Value of Customer Relationship Management Systems](#business-value-of-customer-relationship-management-systems)
- [Enterprise Application Challenges](#enterprise-application-challenges)
- [Next-Generation Enterprise Applications (1 of 2)](#next-generation-enterprise-applications-(1-of-2))
- [How Will M I S Help My Career?](#how-will-m-i-s-help-my-career?)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 7 | [Pages: 213-241](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=213)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives

__9.1__ How do enterprise systems help businesses achieve operational excellence?
__9.2__ How do supply chain management systems coordinate planning\, production\, and logistics with suppliers?
__9.3__ How do customer relationship management systems help firms achieve customer intimacy?
__9.4__ What are the challenges that enterprise applications pose\, and how are enterprise applications taking advantage of new technologies?
__9.5__ How willM IS help my career?

---

## Video Cases

Case 1: Maersk Develops a Global Shipping Management System

Instructional Video: GSMS Protects Patients by Serializing Every Bottle of Drugs

---

## Warehouse Management at Norauto: Conversational Commerce (1 of 2)

* Problem
  * Volume and diversity of product range
  * Global operations
  * Complex supply chain
  * Manual processes
* Solutions
  * Scalable replacement
  * Voice recognition software

Norautoused a scalable warehouse management system from Manhattan Associates and avoice recognition solution byVocollectto reduce errors and enhance order\-fulfilment accuracy\.

Demonstrates why companies need enterprise applications

Illustrates the ability ofE R Psystems to dramatically improve operational effectiveness and decision making on a global scale

---

## Enterprise Systems

Enterprise resource planning $ERP$ systems

Suite of integrated software modules and a common central database

Collects data from many divisions of firm for use in nearly all of firm’s internal business activities

Information entered in one process is immediately available for other processes

---

## Figure 9.1 How Enterprise Systems Work

---

## Enterprise Software

* Built around thousands of predefined business processes that reflect best practices
  * Finance and accounting
  * Human resources
  * Manufacturing and production
  * Sales and marketing
* To implement\, firms:
  * Select functions of system they wish to use
  * Map business processes to software processes
    * Use software’s configuration tables for customizing

---

## Business Value of Enterprise Systems

Increase operational efficiency

Provide firm\-wide information to support decision making

Enable rapid responses to customer requests for information or products

Include analytical tools to evaluate overall organizational performance and improve decision\-making

---

## The Supply Chain

* Network of organizations and processes for:
  * Procuring materials
  * Transforming materials into products
  * Distributing the products
* Upstream supply chain
* Downstream supply chain
* Internal supply chain

---

## Figure 9.2 Nike’s Supply Chain

---

## Supply Chain Management

* Inefficiencies cut into a company’s operating costs
  * Can waste up to 25 percent of operating expenses
* Just\-in\-time strategy
  * Components arrive as they are needed
  * Finished goods shipped after leaving assembly line
* Safety stock: buffer for lack of flexibility in supply chain
* Bullwhip effect
  * Information about product demand gets distorted as it passes from one entity to next across supply chain

---

## Figure 9.3 The Bullwhip Effect

---

## Supply Chain Management Software

* Supply chain planning systems
  * Model existing supply chain
  * Enable demand planning
  * Optimize sourcing\, manufacturing plans
  * Establish inventory levels
  * Identify transportation modes
* Supply chain execution systems
  * Manage flow of products through distribution centers and warehouses

---

## Global Supply Chains and the Internet

* Global supply chain issues
  * Greater geographical distances\, time differences
  * Participants from different countries
    * Different performance standards
    * Different legal requirements
* Internet helps manage global complexities
  * Warehouse management
  * Transportation management
  * Logistics
  * Outsourcing

---

## Demand-Driven Supply Chains: From Push to Pull Manufacturing and Efficient Customer Response

* Push\-based model $build\-to\-stock$
  * EarlierS C Msystems
  * Schedules based on best guesses of demand
* Pull\-based model $demand\-driven$
  * Web\-based
  * Customer orders trigger events in supply chain
* Internet enables move from sequential supply chains to concurrent supply chains
  * Complex networks of suppliers can adjust immediately

---

## Figure 9.4 Push- Versus Pull-Based Supply Chain Models

---

## Figure 9.5 The Emerging Internet-Driven Supply Chain

---

## Business Value of Supply Chain Management Systems

* Match supply to demand
* Reduce inventory levels
* Improve delivery service
* Speed product time to market
* Use assets more effectively
  * Total supply chain costs can be 75 percent of operating budget
* Increase sales

---

## Interactive Session – Organizations: Soma Bay Prospers with E R P in the Cloud

* Class discussion
  * Identify and describe the problem discussed in this case\. What management\, organization\, and technology factors contributed to the problem?
  * Why was anE R Psystem required for a solution? How did having a cloud\-basedE R Psystem contribute to the solution?
  * What were the business benefits of Soma Bay’s new enterprise system? How did it change decision making and the way the company operated?

---

## Customer Relationship Management

* Knowing the customer
* In large businesses\, too many customers and too many ways customers interact with firm
* C R Msystems
  * Capture and integrate customer data from all over the organization
  * Consolidate and analyze customer data
  * Distribute customer information to various systems and customer touch points across enterprise
  * Provide single enterprise view of customers

---

## Figure 9.6 Customer Relationship Management (C R M)

---

## Customer Relationship Management Software (1 of 2)

* Packages range from niche tools to large\-scale enterprise applications
* More comprehensive packages have modules for:
  * Partner relationship management $P RM$
    * Integrating lead generation\, pricing\, promotions\, order configurations\, and availability
    * Tools to assess partners’ performances
  * Employee relationship management $E RM$
    * Setting objectives\, employee performance management\, performance\-based compensation\, employee training

* C R Mpackages typically include tools for:
  * Sales force automation $S FA$
    * Sales prospect and contact information
    * Sales quote generation capabilities
  * Customer service
    * Assigning and managing customer service requests
    * Web\-based self\-service capabilities
  * Marketing
    * Capturing prospect and customer data\, scheduling and tracking direct\-marketing mailings or email
    * Cross\-selling

---

## Figure 9.7 How C R M Systems Support Marketing

__Responses by Channel for January 2019 Promotional Campaign__

---

## Figure 9.8 C R M Software Capabilities

---

## Figure 9.9 Customer Loyalty Management Process Map

---

## Operational and Analytical C R M

* OperationalC R M
  * Customer\-facing applications
  * Sales force automation call center and customer service support
  * Marketing automation
* AnalyticalC R M
  * Based on data warehouses populated by operationalC R Msystems and customer touch points
  * Analyzes customer data $O L AP\, data mining\, etc\.$
    * Customer lifetime value $C L TV$

---

## Figure 9.10 Analytical C R M

---

## Interactive Session – People: CRM Helps Adidas Know Its Customers One Shoe Buyer at a Time

* Class discussion
  * Analyze Adidas using the competitive forces and value chain model\.
  * What is Adidas’s business strategy? What is the role of customer relationship management in that strategy?
  * How do information systems support Adidas’s strategy?
  * How did using Salesforce\.com make Adidas more competitive? How did it change the way the company ran its business?
  * Give an example of two business decisions that were improved by using Salesforce\.com\.

---

## Business Value of Customer Relationship Management Systems

* Business value ofC R Msystems
  * Increased customer satisfaction
  * Reduced direct\-marketing costs
  * More effective marketing
  * Lower costs for customer acquisition/retention
  * Increased sales revenue
* Churn rate
  * Number of customers who stop using or purchasing products or services from a company
  * Indicator of growth or decline of firm’s customer base

---

## Enterprise Application Challenges

* Expensive to purchase and implement enterprise applications
  * Multi\-million dollar projects in 2018
  * Long development times
* Technology changes
* Business process changes
* Organizational learning\, changes
* Switching costs\, dependence on software vendors
* Data standardization\, management\, cleansing

---

## Next-Generation Enterprise Applications (1 of 2)

* Enterprise solutions/suites
  * Make applications more flexible\, web\-enabled\, integrated with other systems
* S OA standards
* Open\-source applications
* On\-demand solutions
* Cloud\-based versions
* Functionality for mobile platform

* SocialC R M
  * Incorporating social networking technologies
  * Company social networks
  * Monitor social media activity; social media analytics
  * Manage social and web\-based campaigns
* Business intelligence
  * Inclusion ofB Iwith enterprise applications
  * Flexible reporting\, ad hoc analysis\, “what\-if” scenarios\, digital dashboards\, data visualization

---

## How Will M I S Help My Career?

The Company:X YZ Global Industrial Components

Position Description: Manufacturing management trainee

Job Requirements

Interview Questions

Author Tips

---
class: segue, left, bottom

# Digital-Markets
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Learning Objectives](#learning-objectives)
- [Video Cases](#video-cases)
- [E-commerce Comes to the Dashboard: The Battle for the "Fourth Screen"](#e-commerce-comes-to-the-dashboard:-the-battle-for-the-"fourth-screen")
- [E-Commerce Today](#e-commerce-today)
- [Figure 10.1 The Growth of E-Commerce](#figure-10.1-the-growth-of-e-commerce)
- [Why E-commerce Is Different (1 of 2)](#why-e-commerce-is-different-(1-of-2))
- [Key Concepts in E-commerce – Digital Markets and Digital Goods in a Global Marketplace](#key-concepts-in-e-commerce-–-digital-markets-and-digital-goods-in-a-global-marketplace)
- [Figure 10.2 The Benefits of Disintermediation to the Consumer](#figure-10.2-the-benefits-of-disintermediation-to-the-consumer)
- [Digital Goods](#digital-goods)
- [Types of E-commerce](#types-of-e-commerce)
- [E-commerce Business Models](#e-commerce-business-models)
- [Interactive Session – Technology: Small Business Loans From a FinTech App](#interactive-session-–-technology:-small-business-loans-from-a-fintech-app)
- [E-commerce Revenue Models](#e-commerce-revenue-models)
- [How Has E-commerce Transformed Marketing?](#how-has-e-commerce-transformed-marketing?)
- [Figure 10.3 Website Visitor Tracking](#figure-10.3-website-visitor-tracking)
- [Figure 10.4 Website Personalization](#figure-10.4-website-personalization)
- [Figure 10.5 How an Advertising Network Works](#figure-10.5-how-an-advertising-network-works)
- [Social E-commerce and Social Network Marketing (1 of 2)](#social-e-commerce-and-social-network-marketing-(1-of-2))
- [Interactive Session – People: Engaging "Socially" with Customers](#interactive-session-–-people:-engaging-"socially"-with-customers)
- [How Has E-commerce Affected Business-To Business Transactions?](#how-has-e-commerce-affected-business-to-business-transactions?)
- [Electronic Data Interchange (E D I)](#electronic-data-interchange-(e-d-i))
- [Figure 10.6: Electronic Data Interchange (E D I)](#figure-10.6:-electronic-data-interchange-(e-d-i))
- [New Ways of B2B Buying and Selling](#new-ways-of-b2b-buying-and-selling)
- [Figure 10.7 A Private Industrial Network](#figure-10.7-a-private-industrial-network)
- [Figure 10.8 A Net Marketplace](#figure-10.8-a-net-marketplace)
- [What Is the Role of M-commerce in Business, and What Are the Most Important M-commerce Applications?](#what-is-the-role-of-m-commerce-in-business,-and-what-are-the-most-important-m-commerce-applications?)
- [Figure 10.9 Mobile Retail Commerce Revenues](#figure-10.9-mobile-retail-commerce-revenues)
- [Location-Based Services and Applications](#location-based-services-and-applications)
- [Other Mobile Commerce Services](#other-mobile-commerce-services)
- [What Issues Must Be Addressed When Building an E-commerce Presence?](#what-issues-must-be-addressed-when-building-an-e-commerce-presence?)
- [Figure 10.10 E-commerce Presence Map](#figure-10.10-e-commerce-presence-map)
- [How Will M I S Help My Career?](#how-will-m-i-s-help-my-career?)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 8 | [Pages: 241-277](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=241)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives

__10\.1__ What are the unique features of e\-commerce\, digital markets\, and digital goods?

__10\.2__ What are the principal e\-commerce business and revenue models?

__10\.3__ How has e\-commerce transformed marketing?

__10\.4__ How has e\-commerce affected business\-to\-business transactions?

__10\.5__ What is the role of m\-commerce in business\, and what are the most important m\-commerce applications?

__10\.6__ What issues must be addressed when building an                e\-commerce presence?

__10\.7__ How willM IS help my career?

---

## Video Cases

Case 1: Walmart Takes on Amazon: A Battle ofIT and Management Systems

Case 2: Groupon: Deals Galore

Case 3: Etsy: A Marketplace and Community

Instructional Video 1: Walmart’s E\-commerce Fulfillment Center Network

Instructional Video 2: Behind the Scenes of an Amazon Warehouse

---

## E-commerce Comes to the Dashboard: The Battle for the "Fourth Screen"

* Problem
  * Opportunities presented by new technology
* Solutions
  * Dashboard display screens
  * Android Auto and Apple CarPlay
  * Android Automotive
  * Customer and auto databases
* Illustrates some major trends in e\-commerce
  * E\-commerce moves to the auto mobile platform
  * Sales of services
  * Advanced data mining and search technology

---

## E-Commerce Today

E\-commerce: Use of the Internet and web to transact business

Began in 1995 and grew exponentially; still stable even in a recession

Companies that survived the dot\-com bubble now thrive

The new e\-commerce: social\, mobile\, local

Move from desktop to smartphone

---

## Figure 10.1 The Growth of E-Commerce

---

## Why E-commerce Is Different (1 of 2)

* Ubiquity
  * Marketspace is virtual
  * Transaction costs reduced
* Global reach
  * Transactions cross cultural and national boundaries
* Universal standards
  * One set of technology standards: Internet standards
* Richness
  * Supports video\, audio\, and text messages

* Interactivity
* Information density
  * Greater price and cost transparency
  * Enables price discrimination
* Personalization/customization
  * Technology permits modification of messages\, goods
* Social technology
  * Promotes user content generation and social networking

---

## Key Concepts in E-commerce – Digital Markets and Digital Goods in a Global Marketplace

Internet and digital markets have changed the way companies conduct business

Information asymmetry reduced

Menu costs\, search and transaction costs reduced

Dynamic pricing enabled

Switching costs

Delayed gratification

Disintermediation

---

## Figure 10.2 The Benefits of Disintermediation to the Consumer

---

## Digital Goods

Goods that can be delivered over a digital network

Cost of producing first unit is almost entire cost of product

Costs of delivery over the Internet very low

Marketing costs remain the same; pricing highly variable

Industries with digital goods are undergoing revolutionary changes $publishers\, record labels\, etc\.$

---

## Types of E-commerce

* Three major types
  * Business\-to\-consumer $B2C$

* Example: Barnes and Noble\.com

* Business\-to\-business $B2B$
    * Example: ChemConnect
  * Consumer\-to\-consumer $C2C$
    * Example: eBay
* E\-commerce can also be categorized by platform
  * Mobile commerce $m\-commerce$

---

## E-commerce Business Models

Portal

E\-tailer

Content provider

Transaction broker

Market creator

Service provider

Community provider

---

## Interactive Session – Technology: Small Business Loans From a FinTech App

* Class discussion
  * What distinguishes the FinTech services described in this case from traditional banks? Explain your answer\.
  * How do the financial services described here use information technology to innovate?
  * What are the advantages and disadvantages of small businesses obtaining loans from FinTech services?
  * If you were a small business\, what factors would you consider in deciding whether to use a FinTech service?

---

## E-commerce Revenue Models

Advertising

Sales

Subscription

Free/Freemium

Transaction fee

Affiliate

---

## How Has E-commerce Transformed Marketing?

* Internet provides new ways to identify and communicate with customers
* Long tail marketing
* Internet advertising formats
* Behavioral targeting
  * Tracking online behavior of individuals
* Programmatic ad buying
* Native advertising

---

## Figure 10.3 Website Visitor Tracking

---

## Figure 10.4 Website Personalization

---

## Figure 10.5 How an Advertising Network Works

---

## Social E-commerce and Social Network Marketing (1 of 2)

* Social e\-commerce based on digital social graph
* Features of social e\-commerce driving its growth
  * Newsfeed
  * Timelines
  * Social sign\-on
  * Collaborative shopping
  * Network notification
  * Social search $recommendations$
* Social media
  * Fastest growing media for branding and marketing

* Social network marketing
  * Seeks to leverage individuals’ influence over others
  * Targeting a social network of people sharing interests and advice
  * Facebook’s “Like” button
  * Social networks have huge audiences
* Social shopping sites
* Wisdom of crowds
* Crowdsourcing

---

## Interactive Session – People: Engaging "Socially" with Customers

* Class discussion
  * Assess the people\, organization\, and technology issues for using social media technology to engage with customers\.
  * What are the advantages and disadvantages of using social media for advertising\, brand building\, market research\, and customer service?
  * Give an example of a business decision in this case study that was facilitated by using social media to interact with customers\.
  * Should all companies use social media technology for customer service and marketing? Why or why not? What kinds of companies are best suited to use these platforms?

---

## How Has E-commerce Affected Business-To Business Transactions?

* U\.S\. B2B trade in 2019 is $13\.5 trillion
  * U\.S\. B2B e\-commerce in 2018 is $6\.3 trillion
* Internet and networking helps automate procurement
* Variety of Internet\-enabled technologies used in B2B
  * Electronic data interchange $E DI$
  * Private industrial networks $private exchanges$
  * Net marketplaces
  * Exchanges

---

## Electronic Data Interchange (E D I)

* Computer\-to\-computer exchange of standard transactions such as invoices\, purchase orders
* Major industries haveE D Istandards
  * Define structure and information fields of electronic documents
* More companies are moving toward web\-enabled private networks
  * Allow them to link to a wider variety of firms thanE D Iallows
  * Enable sharing a wider range of information

---

## Figure 10.6: Electronic Data Interchange (E D I)

---

## New Ways of B2B Buying and Selling

* Private industrial networks
  * Private exchanges
  * Large firm using a secure website to link to suppliers and partners
* Net marketplaces $e\-hubs$
  * Single digital marketplace for many buyers and sellers
  * May focus on direct or indirect goods
  * May be vertical or horizontal marketplaces
* Exchanges
  * Independently owned third\-party Net marketplaces for spot purchasing

---

## Figure 10.7 A Private Industrial Network

---

## Figure 10.8 A Net Marketplace

---

## What Is the Role of M-commerce in Business, and What Are the Most Important M-commerce Applications?

* M\-commerce in 2019 is 45 percent of all e\-commerce
* Fastest growing form of e\-commerce
  * Growing at 30 percent or more per year
* Main areas of growth
  * Mass market retailing $Amazon\, eBay\, etc\.$
  * Sales of digital content $music\, T V\, etc\.$
  * In\-app sales to mobile devices

---

## Figure 10.9 Mobile Retail Commerce Revenues

---

## Location-Based Services and Applications

* Used by 74 percent of smartphone owners
* Based onG P Smap services
* Geosocial services
  * Where friends are
* Geo advertising
  * What shops are nearby
* Geo information services
  * Price of house you are passing

---

## Other Mobile Commerce Services

* Financial account management apps
  * Banks\, credit card companies
* Mobile advertising market
  * Google and Facebook are largest markets
  * Ads embedded in games\, videos\, and mobile apps
* 65 percent of online retailers have m\-commerce websites

---

## What Issues Must Be Addressed When Building an E-commerce Presence?

* Most important management challenges
  * Developing clear understanding of business objectives
  * Knowing how to choose the right technology to achieve those objectives
* Develop an e\-commerce presence map
  * Four areas: websites\, email\, social media\, offline media
* Develop a timeline: milestones
  * Breaking a project into discrete phases

---

## Figure 10.10 E-commerce Presence Map

---

## How Will M I S Help My Career?

The Company:SportsFantasyEmpire

Position Description: Junior e\-commerce data analyst

Job Requirements

Interview Questions

Author Tips

---
class: segue, left, bottom

# Decision-Making-AI
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Learning Objectives](#learning-objectives)
- [Machine Learning Helps Akershus University Hospital Make Better Treatment Decisions](#machine-learning-helps-akershus-university-hospital-make-better-treatment-decisions)
- [Business Value of Improved Decision Making](#business-value-of-improved-decision-making)
- [Table 11.1 Business Value of Enhanced Decision Making](#table-11.1-business-value-of-enhanced-decision-making)
- [Types of Decisions](#types-of-decisions)
- [Figure 11.1 Information Requirements of Key Decision-Making Groups in a Firm](#figure-11.1-information-requirements-of-key-decision-making-groups-in-a-firm)
- [The Decision-Making Process](#the-decision-making-process)
- [Figure 11.2 Stages in Decision Making](#figure-11.2-stages-in-decision-making)
- [High-Velocity Automated Decision Making](#high-velocity-automated-decision-making)
- [Quality of Decisions and Decision Making](#quality-of-decisions-and-decision-making)
- [What Is Business Intelligence?](#what-is-business-intelligence?)
- [The Business Intelligence Environment](#the-business-intelligence-environment)
- [Figure 11.3 Business Intelligence and Analytics for Decision Support](#figure-11.3-business-intelligence-and-analytics-for-decision-support)
- [Business Intelligence and Analytics Capabilities](#business-intelligence-and-analytics-capabilities)
- [Table 11.3 Examples of Predefined Business Intelligence Production Reports](#table-11.3-examples-of-predefined-business-intelligence-production-reports)
- [Interactive Session – Technology: Siemens Makes Business Processes More Visible](#interactive-session-–-technology:-siemens-makes-business-processes-more-visible)
- [Predictive Analytics](#predictive-analytics)
- [Big Data Analytics](#big-data-analytics)
- [Operational Intelligence and Analytics](#operational-intelligence-and-analytics)
- [Location Analytics and G I S](#location-analytics-and-g-i-s)
- [Figure 11.4 Business Intelligence Users](#figure-11.4-business-intelligence-users)
- [Interactive Session – Organizations: Predictive Maintenance in the Oil and Gas Industry](#interactive-session-–-organizations:-predictive-maintenance-in-the-oil-and-gas-industry)
- [Support for Semi-Structured Decisions](#support-for-semi-structured-decisions)
- [Figure 11.5 Sensitivity Analysis](#figure-11.5-sensitivity-analysis)
- [Figure 11.6 A Pivot Table That Examines Customer Regional Distribution and Advertising Source](#figure-11.6-a-pivot-table-that-examines-customer-regional-distribution-and-advertising-source)
- [Decision Support for Senior Management (1 of 2)](#decision-support-for-senior-management-(1-of-2))
- [Figure 11.7 The Balanced Scorecard Framework](#figure-11.7-the-balanced-scorecard-framework)
- [Decision Support for Senior Management (2 of 2)](#decision-support-for-senior-management-(2-of-2))
- [Artificial Intelligence Techniques](#artificial-intelligence-techniques)
- [What Are the Major Types of AI Techniques and How Do They Benefit Organizations? (1 of 5)](#what-are-the-major-types-of-ai-techniques-and-how-do-they-benefit-organizations?-(1-of-5))
- [Figure 11.8 Rules in an Expert System](#figure-11.8-rules-in-an-expert-system)
- [What Are the Major Types of AI Techniques and How Do They Benefit Organizations?(2 of 5)](#what-are-the-major-types-of-ai-techniques-and-how-do-they-benefit-organizations?(2-of-5))
- [Figure 11.9 How a Neural Network Works](#figure-11.9-how-a-neural-network-works)
- [Figure 11.10 A Deep Learning Network](#figure-11.10-a-deep-learning-network)
- [What Are the Major Types of AI Techniques and How Do They Benefit Organizations?(3 of 5)](#what-are-the-major-types-of-ai-techniques-and-how-do-they-benefit-organizations?(3-of-5))
- [Figure 11.11 The Components of a Genetic Algorithm](#figure-11.11-the-components-of-a-genetic-algorithm)
- [What Are the Major Types of AI Techniques and How Do They Benefit Organizations?(4 of 5)](#what-are-the-major-types-of-ai-techniques-and-how-do-they-benefit-organizations?(4-of-5))
- [How Will M I S Help My Career?](#how-will-m-i-s-help-my-career?)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter 9 | [Pages: 277-NA](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=277)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives

__11.1__ What are the different types of decisions\, and how does the decision\-making process work?
__11.2__ How do business intelligence and business analytics support decision making?
__11.3__ What is artificial intelligence $AI$? How does it differ from human intelligence?
__11.4__ What are the major types of AI techniques and how do they benefit organizations?
__11.5__ How willM I Shelp my career?

---

## Machine Learning Helps Akershus University Hospital Make Better Treatment Decisions

* Problem
  * Unstructured data
  * Very large volume of data
  * Opportunities from new technology
  
* Solutions
  * IBM Watson Explorer
  * Machine learning
  * Natural language processing
* Illustrates how information systems improve decision making

---

## Business Value of Improved Decision Making

* Possible to measure value of improved decision making
* Decisions made at all levels of the firm
  * Some are common\, routine\, and numerous
  * Although value of improving any single decision may be small\, improving hundreds of thousands of “small” decisions adds up to large annual value for the business

---

## Table 11.1 Business Value of Enhanced Decision Making

---

## Types of Decisions

* Unstructured
  * Decision maker must provide judgment to solve problem
  * Novel\, important\, nonroutine
  * No well\-understood or agreed\-upon procedure for making them
* Structured
  * Repetitive and routine
  * Involve definite procedure for handling them so do not have to be treated as new
* Semi\-structured
  * Only part of problem has clear\-cut answer provided by accepted procedure

---

## Figure 11.1 Information Requirements of Key Decision-Making Groups in a Firm

---

## The Decision-Making Process

* 1\.Intelligence
  * Discovering\, identifying\, and understanding the problems occurring in the organization

* 2\.Design
  * Identifying and exploring various solutions

* 3\.Choice
  * Choosing among solution alternatives

* 4\.Implementation
  * Making chosen alternative work and monitoring how well solution is working

---

## Figure 11.2 Stages in Decision Making

---

## High-Velocity Automated Decision Making

Humans eliminated

Decision\-making process captured by computer algorithms

Predefined range of acceptable solutions

Decisions made faster than managers can monitor and control

E\.g\.\, Trading programs at electronic stock exchanges

---

## Quality of Decisions and Decision Making

Accuracy

Comprehensiveness

Fairness

Speed $efficiency$

Coherence

Due process

---

## What Is Business Intelligence?

* Infrastructure for managing data from business environment
  * Warehousing
  * Integrating
  * Reporting
  * Analyzing
* Hadoop\,O L A P\, analytics
* Products defined by technology vendors and consulting firms

---

## The Business Intelligence Environment

Six elements in theB Ienvironment

* 1\.Data from business environment
  * 2\.Business intelligence infrastructure
  * 3\.Business analytics toolset
  * 4\.Managerial users and methods
  * 5\.Delivery platform
    * M  S  S\,D  S  S\,E  S  S

6\.User interface

---

## Figure 11.3 Business Intelligence and Analytics for Decision Support

---

## Business Intelligence and Analytics Capabilities

* Production reports
* Parameterized reports
* Dashboards/scorecards
* Ad\-hoc query/search/report creation
* Drill\-down
* Forecasts\, scenarios\, models
  * Linear forecasting\, what\-if scenario analysis\, data analysis

---

## Table 11.3 Examples of Predefined Business Intelligence Production Reports

---

## Interactive Session – Technology: Siemens Makes Business Processes More Visible

* Class discussion
  * Identify the problem in this case study\. What people\, organization\, and technology factors contributed to the problem?
  * Describe the capabilities of process mining software\. Was this an effective solution? Explain your answer\.
  * How did process mining change decision making at Siemens?
  * What people\, organization\, and technology issues need to be addressed when implementing process mining systems?

---

## Predictive Analytics

* Uses statistical analytics\, data mining\, historical data; assumptions of future conditions
* Extracts information from data to predict future trends and behavior patterns
  * Responses to direct marketing campaigns
  * Best potential customers for credit cards
  * At\-risk customers
  * Customer response to price changes and new services
* Accuracies range from 65 to 90 percent

---

## Big Data Analytics

* Predictive analytics can use the big data generated from social media\, consumer transactions\, sensor and machine output\, etc\.
* Combining with customer data
* Big data analytics driving move toward “smart cities”
  * Utility management
  * Transportation operation
  * Healthcare delivery
  * Public safety

---

## Operational Intelligence and Analytics

* Operational intelligence
  * Day\-to\-day monitoring of business decisions and activity
* Real\-time monitoring
* Schneider National truckload logistics services provider
  * Data developed from sensors in trucks\, trains\, industrial systems
* The Internet of Things $I o T$ providing huge streams of data from connected sensors and devices

---

## Location Analytics and G I S

* Location analytics
  * Big data analytics that uses location data from mobile phones\, sensors\, and maps
  * E\.g\. Helping a utility company view customer costs as related to location
* G I S– Geographic information systems
  * Help decision makers visualize problems with mapping
  * Tie location data about resources to map

---

## Figure 11.4 Business Intelligence Users

---

## Interactive Session – Organizations: Predictive Maintenance in the Oil and Gas Industry

* Class discussion
  * Why is predictive maintenance so important in the oil and gas industry? What problems does it solve?
  * What is the role of the Internet of Things $IoT$ and Big Data analytics in predictive maintenance?
  * How did BP and Royal Dutch Shell’s predictive maintenance applications change business operations and decision making?
  * Give an example of how predictive maintenance systems could be used in another industry\.

---

## Support for Semi-Structured Decisions

* Decision\-support systems $D S S$
  * B Idelivery platform for “super\-users” who want to create own reports\, use more sophisticated analytics and models
  * What\-if analysis
  * Sensitivity analysis
  * Backward sensitivity analysis
  * Pivot tables: Spreadsheet function for multidimensional analysis
  * Intensive modeling techniques

---

## Figure 11.5 Sensitivity Analysis

---

## Figure 11.6 A Pivot Table That Examines Customer Regional Distribution and Advertising Source

---

## Decision Support for Senior Management (1 of 2)

* Executive support systems
* Balanced scorecard method
  * Measures four dimensions of firm performance
    * Financial
    * Business process
    * Customer
    * Learning and growth
  * Key performance indicators $K P I$ used to measure each dimension

---

## Figure 11.7 The Balanced Scorecard Framework

---

## Decision Support for Senior Management (2 of 2)

* Business performance management $B P M$
  * Management methodology based on firm’s strategies
  * Translates strategies into operational targets
  * Uses set ofK P Is to measure progress toward targets
* E S Scombine internal data with external
  * Financial data\, news\, etc\.
* Drill\-down capabilities

---

## Artificial Intelligence Techniques

* Artificial intelligence:Grand vision vs\. narrow definition
* Evolution of AI
  * Big data databases
  * Reduction in the price of processors
  * Expansion in capacity of processors
  * Refinement and explosion of algorithms
  * Large investments in IT and AI
* Progress in image recognition and natural language
  * E\.g\.: Siri\, Alexa\, facial recognition

---

## What Are the Major Types of AI Techniques and How Do They Benefit Organizations? (1 of 5)

* Expert systems
  * Capture human expertise in a limited domain of knowledge
  * Express expertise as a set of rules in a software system
  * Knowledge base
  * Inference engine

---

## Figure 11.8 Rules in an Expert System

---

## What Are the Major Types of AI Techniques and How Do They Benefit Organizations?(2 of 5)

* Machine learning
  * Computers improving performance by using algorithms to learn patterns from data and examples
* Neural networks
  * Find patterns and relationships in very large amounts of data
  * Sensoring and processing nodes
  * “Deep Learning” neural networks

---

## Figure 11.9 How a Neural Network Works

---

## Figure 11.10 A Deep Learning Network

---

## What Are the Major Types of AI Techniques and How Do They Benefit Organizations?(3 of 5)

* Genetic algorithms
  * Examine large number of solutions for a problem
  * Based on machine learning techniques inspired by evolutionary biology

---

## Figure 11.11 The Components of a Genetic Algorithm

---

## What Are the Major Types of AI Techniques and How Do They Benefit Organizations?(4 of 5)

* Natural language processing
  * Software that can process voice or text commands using natural human language
* Computer vision systems
  * Emulate human visual system to view and extract information from real\-world images
* Robotics
  * Design and use of movable machines that can substitute for humans

* Intelligent Agents
  * Software programs that imitate humans and perform tasks on command
  * The agent uses a limited built\-in or learned knowledge base
  * Accomplish tasks or make decisions on the user’s behalf\, e\.g\. chatbots finding cheap fares\, routing calls in a call center

---

## How Will M I S Help My Career?

The Business: RazzleDazzle Technology

Position Description

Job Requirements

Interview Questions

---
class: segue, left, bottom

# IS-Business-Case
### ERP Systems

#### Dominik Böhler, Deggendorf Institute of Technology

---
class: agenda

Agenda
------

- [Learning Objectives](#learning-objectives)
- [Video Cases](#video-cases)
- [Angostura Builds A Mobile Sales System](#angostura-builds-a-mobile-sales-system)
- [Key Business Case Considerations](#key-business-case-considerations)
- [Figure 12.1 Factors to Consider in Making the Business Case](#figure-12.1-factors-to-consider-in-making-the-business-case)
- [The Information Systems Plan](#the-information-systems-plan)
- [Selecting Projects](#selecting-projects)
- [Figure 12.2 A System Portfolio Analysis](#figure-12.2-a-system-portfolio-analysis)
- [Scoring Model for Selecting Alternatives](#scoring-model-for-selecting-alternatives)
- [Building a Business Case](#building-a-business-case)
- [Determining Solution Costs and Benefits](#determining-solution-costs-and-benefits)
- [Capital Budgeting for Information Systems](#capital-budgeting-for-information-systems)
- [Figure 12.4 Developing an Information System Solution](#figure-12.4-developing-an-information-system-solution)
- [Evaluating and Choosing Solutions](#evaluating-and-choosing-solutions)
- [Implementing the Solution](#implementing-the-solution)
- [Traditional Systems Development Lifecycle](#traditional-systems-development-lifecycle)
- [Figure 12.6 The Traditional Systems Development Life Cycle](#figure-12.6-the-traditional-systems-development-life-cycle)
- [Prototyping](#prototyping)
- [Figure 12.7 The Prototyping Process](#figure-12.7-the-prototyping-process)
- [End-User Development](#end-user-development)
- [Application Software Packages, Software Services, and Outsourcing](#application-software-packages,-software-services,-and-outsourcing)
- [Figure 12.8 Total Cost of Offshore Outsourcing](#figure-12.8-total-cost-of-offshore-outsourcing)
- [Mobile Application Development](#mobile-application-development)
- [Interactive Session – Technology: Systems Development is Different for Mobile Applications](#interactive-session-–-technology:-systems-development-is-different-for-mobile-applications)
- [Rapid Application Development](#rapid-application-development)
- [Component-Based Development and Web Services](#component-based-development-and-web-services)
- [Project Management Objectives](#project-management-objectives)
- [Managing Project Risk and System-Related Change](#managing-project-risk-and-system-related-change)
- [Figure 12.10 A  P E R T Chart](#figure-12.10-a--p-e-r-t-chart)
- [Interactive Session – Organizations: Arup Moves Project Management to the Cloud](#interactive-session-–-organizations:-arup-moves-project-management-to-the-cloud)
- [How Will MIS Help My Career?](#how-will-mis-help-my-career?)

---

Learning Components
-------------------

#### ERP Systems, Summer 2021

.pull-left[

Skim-read, get the essentials, prepare discussion.

Laudon & Laudon (2020), ** Essentials of Management Information Systems**

Fourteenth Edition,
Global Edition.

.content-box-gray[

**This week: Chapter NA | [Pages: NA-309](https://ebookcentral.proquest.com/lib/th-deggendorf/reader.action?docID=6191969&ppg=NA)**
  ]
]

.pull-right[

- Get perspectives and understanding
- Discuss with peers
- (maybe) Entertainment

- Apply knowledge in practical excercises
- Build your digital skillset in a project
- Prepare directly for the exam
  
]

---

## Learning Objectives

__12.1__ How should managers build a business case for the acquisition and development of a new information system?
__12.2__ What are the core problem\-solving steps for developing a new information system?
__12.3__ What are the alternative methods for building information systems?
__12.4__ How should information systems projects be managed?
__12.5__ How willM I Shelp my career?

---

## Video Cases

Case 1: NASA Project Management Challenges

Case 2:IBM: Business Process Management in a SaaS Environment

Case 3:I B MHelps the City of Madrid with Real\-TimeB P MSoftware

Instructional Videos:

What is PaaS? What is Predix?

B P M: Business Process Management Customer Story

---

## Angostura Builds A Mobile Sales System

* Problem
  * Inefficient manual procedures
  * High order entry error rates
* Solutions
  * SAP ERP
  * SAP Netweaver
  * Gateway software
* Illustrates benefits of implementing a new system solution and automating manual processes

---

## Key Business Case Considerations

IT is an investment of corporate funds\. Is it worth it?

What is the rationale for investment?

How will the system fit with firm’s strategic goals?

How does the system provide value?

What are the risks? Alternative solutions?

How will the firm’s culture\, processes\, and systems need to change?

---

## Figure 12.1 Factors to Consider in Making the Business Case

---

## The Information Systems Plan

Overview of plan contents

Strategic business plan rational

Current systems

New developments

Management strategy

Implementation of the plan

Budget

---

## Selecting Projects

* Determining project costs and benefits
  * Tangible benefits
  * Intangible benefits
  * Capital budgeting methods
* Information systems plan
* Portfolio analysis
* Scoring model

---

## Figure 12.2 A System Portfolio Analysis

---

## Scoring Model for Selecting Alternatives

Used to evaluate alternative system projects\, especially when many criteria exist

Assigns weights to various features of system and calculates weighted totals

Many qualitative judgments involved

Requires experts who understand the issues and the technology

See Table 12\.2 Example Scoring Model in text

---

## Building a Business Case

* New information systems are built as solutions to problems
* Four steps to building an information system
  * Define and understand the problem
  * Develop alternative solutions
  * Choose a solution
  * Implement the solution
* The first three steps are called systems analysis

---

## Determining Solution Costs and Benefits

* Tangible benefits
  * Measurable monetary value
  * E\.g\. lower costs\, higher sales
* Intangible benefits
  * Better customer service
  * Enhanced or faster decision making
* See Table 12\.3 in text Costs and Benefits of Information Systems

---

## Capital Budgeting for Information Systems

* Capital budgeting models
  * Measure value of long\-term capital investment projects
  * Rely on measures of the firm’s cash outflows and inflows
* Principal capital budgeting models evaluate IT projects
  * Payback method
  * Accounting rate of return on investment $ROI$
  * Net present value
  * Internal rate of return $IRR$
* Limitations of financial models
* See Figure 12\.3 in text

---

## Figure 12.4 Developing an Information System Solution

---

## Evaluating and Choosing Solutions

* Feasibility study:
  * Is solution feasible from financial\, technical\, and organizational standpoint?
* Systems proposal report
  * Describes\, for each alternative solution
    * Costs and benefits
    * Advantages and disadvantages

---

## Implementing the Solution

* Systems design
* Completing implementation
  * Hardware selection and acquisition
  * Software development and programming
  * Testing
  * Training and documentation
  * Conversion
  * Production and maintenance
* Managing the change

---

## Traditional Systems Development Lifecycle

SLDC: Oldest method for building information systems

Phased approach with formal stages

Waterfall approach

Formal division of labor

Used for building large\, complex systems

Time consuming and expensive to use

---

## Figure 12.6 The Traditional Systems Development Life Cycle

---

## Prototyping

* Preliminary model built rapidly and inexpensively
* Four\-step process
  * Identify the user’s basic requirements
  * Develop an initial prototype
  * Use the prototype
  * Revise and enhance the prototype
* Especially useful in designing a user interface

---

## Figure 12.7 The Prototyping Process

---

## End-User Development

End users create simple information systems with little or no assistance from specialists

Completed more rapidly than systems developed with conventional tools

Often leads to higher level of user involvement and satisfaction with systems

Cannot handle large numbers of transactions

Organizational risks

---

## Application Software Packages, Software Services, and Outsourcing

* Request for Proposal $RFP$
* Application software packages and cloud software packages
  * Generalized systems for universal functions with standard processes
  * Customization features
* Outsourcing
  * Domestic outsourcing
  * Offshore outsourcing

---

## Figure 12.8 Total Cost of Offshore Outsourcing

---

## Mobile Application Development

* Mobile websites\, web apps
* Native apps
* Different requirements for mobile devices than for PCs
  * Reduced size of screens
  * Touch screens
  * Saving resources: bandwidth\, memory\, processing\, data entry
* Responsive web design

---

## Interactive Session – Technology: Systems Development is Different for Mobile Applications

* Class discussion
  * What people\, organization\, and technology issues need to be addressed when building mobile applications?
  * How does user requirement definition for mobile applications differ from that in traditional systems analysis?
  * Describe how Great\-West’s invoice approval process changed after the mobile application was deployed\.

---

## Rapid Application Development

* Need for agility\, scalability\, and fast\-cycle techniques
* Rapid application development $RAD$
  * Creating workable systems in a very short period of time
* Joint application design $JAD$
  * End users and information systems specialists working together on design
* Agile development
* DevOps

---

## Component-Based Development and Web Services

* Component\-based development
  * Groups of objects that provide software for common functions $e\.g\.\, online ordering$ and can be combined to create large\-scale business applications
* Web services
  * Reusable software components that use XML and open Internet standards $platform independent$
  * Enable applications to communicate with no custom programming required to share data and services
* Cloud\-based solutions: online development

---

## Project Management Objectives

* Project management
  * Application of knowledge\, skills\, tools\, and techniques to achieve targets within specified budget and time constraints
* Five major variables:
  * Scope
  * Time
  * Cost
  * Quality
  * Risk

---

## Managing Project Risk and System-Related Change

* Implementation and change management
  * Implementation
  * User\-designer communications gap
* Controlling risk factors
  * Formal planning and tools
  * Gantt chart\, PERT chart
  * Project management software
* Overcoming user resistance
  * Ergonomics
  * Organizational impact analysis

---

## Figure 12.10 A  P E R T Chart

---

## Interactive Session – Organizations: Arup Moves Project Management to the Cloud

* Class discussion
  * What is the relationship between information technology\, project management\, and Arup’s business model and business strategy?
  * How does Microsoft Project Online support Arup’s business strategy? How did it change the way the company works?
  * What people\, organization\, and technology issuesdid Arup have to address when selecting Project Online as its global project portfolio management tool?

---

## How Will MIS Help My Career?

The Business: XYZ Multimedia Entertainment

Position Description

Job Requirements

Interview Questions